Nepal and US sign USD 659 million assistance agreement

Kathmandu, May 5 (PTI) Nepal and the US on Thursday signed a USD 659 million “development objective” agreement which is aimed at supporting the Himalayan nation’s goal of graduating to a middle-income country.

Nepal aims to graduate from the Least Developed Country category by December 2026. The grant for the next five-year period will support Nepal’s goal of graduating to a middle-income country. “This assistance agreement, through the US Agency for International Development (USAID), outlines the broad development areas of the US and Nepal’s cooperation and collaboration,” according to a statement issued by the US embassy here.

“Partnering with the Nepal government, civil society and the private sector, the US assistance will advance Nepal’s sustainable development through strengthened democratic governance, enterprise driven economic growth and increased resilience for communities most at-risk to natural disasters and climate change,” said the statement. “The amount will be transparently implemented through both on and off treasury modalities,” it said.

According to the statement, USAID will develop projects under this assistance agreement in collaboration with ministries and implement in accordance with the government rules and regulations. Ishwori Prasad Aryal, Joint Secretary and Head of International Economic Cooperation Coordination Division at the Finance Ministry, and Sepideh Keyvanshad, USAID/Nepal Mission Director, signed and exchanged the agreement on behalf of their respective governments.

He said that Nepal has greatly benefited from the financial and technical assistance extended by the US to help drive Nepal’s socioeconomic development. This year, Nepal and the US are celebrating 75 years of diplomatic relations.