USAID’s $87B freeze: What it means for Nepal’s future

The U.S. government has suspended USAID’s $87 billion financial assistance to Nepal for 90 days, affecting 35 major projects in sectors like health, agriculture, and education. The move raises concerns about Nepal’s economic stability, as the country relies heavily on foreign aid for development.

The suspension could delay critical programs, impacting employment and slowing economic growth. Key sectors such as healthcare, farming, and education face funding shortages, potentially increasing financial strain on the government and the public. Experts warn that prolonged aid cuts could disrupt essential services and hinder Nepal’s long-term development goals.

The Nepalese government is exploring alternative funding sources, including international donors and public-private partnerships, but replacing USAID’s financial support remains a significant challenge. The aid freeze also risks lowering investor confidence, affecting foreign investment in Nepal.