The recently-launched Foreign Aid Mobilisation Policy, 2025 of Nepal aims to bring greater accountability and transparency to the utilisation of foreign aid channelled through Non-Governmental Organisations (NGOs).

A key aspect of the strategy focuses on ensuring that foreign aid mobilised by the International NGOs supports areas identified as crucial for the nation's development.

Internalising the new federal structure of the country, it mandates that INGOs must secure prior agreement from the local authorities where they intend to implement projects. Details of this assistance will be recorded in the Ministry's aid management information system, enhancing oversight.

Likewise, in a move towards more inclusive planning, the policy states that the selection of projects by INGOs must involve the participation of the federal, provincial, and local levels of government in the project formulation stage. Crucially, NGOs, both national and international, must implement projects in the specific local authority from which they obtained prior consent for their international fundraising initiatives.

The policy that replaced the earlier Development Cooperation Policy, 2019 emphasises aligning international assistance with Nepal's national needs and priorities.

Furthermore, the policy stipulates that both national and international NGOs seeking to implement projects funded through their international fundraising efforts must now do so via the Social Welfare Council (SWC).

Where INGOs partner with local NGOs for project implementation, they will be required to submit details of these agreements to the SWC. The Council will then facilitate the implementation process based on the information provided.

The policy also addresses the broader coordination of foreign aid, aiming for the efficient utilisation of resources through strengthened ownership and coordination across different levels and bodies. It bars the mobilisation of foreign aid through the NGOs in the religious, political and sensitive national areas. To check the duplication of the programmes and projects, the government can designate the geographical or thematic areas.

Likewise, the foreign aid operated programmes should not have administrative cost exceeding 20 per cent of the total budget.

Source: The Rising Nepal