Germany to provide 37.6 million Euro to Nepal

Germany has pledged to provide 37.6 million Euro for the technical and financial cooperation to be effective for 2026/27.

The commitment was made during the Nepal–Germany Development Cooperation Negotiations held in Kathmandu on June 16–17, where the two countries agreed to prioritise cooperation in the sectors of energy, sustainable economic development and health over the next two years.

The Nepali delegation was led by chief of the International Economic Relations Division under the Ministry of Finance, Dr Dhani Ram Sharma, while the German delegation was led by head of the South Asia Division at the German Federal Ministry for Economic Cooperation and Development (BMZ), Barbara Schäfer.

As per agreements, the German assistance will support initiatives related to renewable energy and energy efficiency, power distribution, green and resilient agricultural development, revenue sector reform, quality infrastructure, gender equality, sustainable economic development and access to finance.

Speaking at the opening session, Schäfer reaffirmed Germany’s long-term commitment to development cooperation and the United Nations Sustainable Development Goals (SDGs), stating that Germany would continue to be a reliable partner for Nepal and the international community, reads a press release issued by the Embassy of Germany in Nepal. 

The assistance package includes both new initiatives and the continuation of ongoing programmes implemented through KfW Development Bank, the German Agency for International Cooperation (GIZ) and the German National Metrology Institute (PTB).

The two sides also reviewed Germany’s support to Nepal through multilateral channels, including various United Nations agencies and international mechanisms such as the Global Fund to Fight AIDS, Tuberculosis and Malaria. Cooperation implemented in partnership with the European Union, of which Germany is a major contributor, was also discussed during the negotiations.

Both delegations appreciated the longstanding relationship between Nepali and German civil society organizations and underscored the importance of a strong civil society for sustainable development.

Similarly, German Ambassador to Nepal, t, said sustainable development requires a solid foundation of human rights, the rule of law and a vibrant civil society.

The next biennial government-to-government negotiations on development cooperation are scheduled to take place in Germany in 2028. Nepal and Germany have maintained a longstanding partnership focused on sustainable economic development, climate action, health sector strengthening and the advancement of the SDGs.

Both delegations expressed satisfaction with the outcomes while reaffirming their commitment to further strengthening Nepal–Germany cooperation in the two-day negotiations.