Kathmandu: The Government of Nepal and the Government of the Federal Republic of Germany successfully concluded negotiations on development cooperation held in Kathmandu, Nepal on 16–17 June 2026.
The Nepali delegation was headed by Dr. Dhani Ram Sharma, Chief of the International Economic Relations Division (IERD), Ministry of Finance, while the German delegation was led by Ms. Barbara Schäfer, Head of Division for South Asia at the German Federal Ministry for Economic Cooperation and Development (BMZ). The two sides discussed priorities and areas of collaboration for Nepali-German development cooperation over the next two years in the sectors of energy, sustainable economic development and health. The negotiations resulted with the German Government committing up to EUR 37.6 million in Technical and Financial Cooperation for the period 2026–2027.
“Let me reassure you that Germany’s development policy will remain constant and reliable, focused on the long term and fully committed to the UN Sustainable Development Goals. Germany remains a trusted partner, to Nepal and globally”, emphasized Ms. Schäfer (BMZ) during her opening remarks. The commitments will support key initiatives including promotion of 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. The package includes both new initiatives and the continuation of ongoing programmes implemented by the KfW Development Bank (KfW), Gesellschaft für Internationale Zusammenarbeit (GIZ) and the German National Metrology Institute (PTB).
Beyond bilateral cooperation, Germany has also been supporting Nepal through multilateral channels, including various United Nations organizations and other international mechanisms like the Global Fund for Aids, Tuberculosis and Malaria. Furthermore, cooperation implemented in partnership with European Union, to which Germany is a major contributor, was also discussed during the negotiations. Both sides appreciated the unique relationship between German and Nepali civil society and shared the conviction that a strong civil society is indispensable for any development.
“We firmly believe that sustainable development requires a strong foundation of human rights, the rule of law, and a flourishing civil society,” German Ambassador to Nepal, Mr. Udo Volz said.
The next biennial government-to-government negotiations on development cooperation are scheduled to take place in Germany in 2028. Nepal and Germany share a long-standing and productive partnership aimed at supporting sustainable economic development, addressing climate change, strengthening the health sector, and advancing the Sustainable Development Goals (SDGs). The two-day government-to-government negotiations were conducted in an open and constructive atmosphere.
Delegations from both sides expressed satisfaction with the outcomes of the negotiations and reaffirmed their commitment to further strengthening the partnership between Nepal and Germany.
