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heading foldHow we are helping

2013/14 Estimated Outcome

$27.3 million

2014/15 Budget Estimate

$33.9 million


Nepal is among the poorest and least developed countries in the world with slow economic growth. Widespread, entrenched inequality exists in access to basic services for minority and traditionally marginalised groups, women and those with disabilities. This inequality has been a key driver of conflict and instability. A more stable, prosperous Nepal has the potential to trade more and contribute to broader regional growth.

Australian aid investments aim to expand economic opportunities for the poor and address barriers to participation and productivity. Programmes target micro-enterprise development, job creation, improving access to quality health and education services and strengthening the Government of Nepal’s financial management systems. Australia works closely with the Government of Nepal and other like-minded donors in the delivery of these programmes.

Man inspects a 

beautifully carved piece of timber furniture Tul Bahadur BK runs a furniture making business that has received electric tools as part of the MEDEP support (credit: DFAT).

Australia will enable private sector development through:

  • the Micro-Enterprise Development Program which aims to foster an enabling environment for private sector employment creation. In 2014-15, the majority of beneficiaries will continue to be poor women (70 per cent), youth and individuals from socially marginalised groups. Since 1998, the programme has created more than 70,000 micro-entrepreneurs and directly created more than 70,000 jobs. Facilitating entrepreneurship and innovation to drive economic growth is a key policy priority for the Government of Nepal.

Woman holds baby while a health 

worker checks the child's leg Mother Nishal Thapa brings her child to a health clinic in Pokhara, Nepal (credit: DFAT).

Investments in Nepal’s education and health sectors will contribute to a productive work force, and will include:

  • improving nutrition, child survival rates and maternal health of the poor
  • strengthening public education through the Nepalese Government’s School Sector Reform Program by improving quality and promoting inclusion of more than 3.8 million girls and boys from poor and marginalised communities, including children with disabilities
  • targeted scholarships to Nepalese for post-graduate studies and short-courses in Australia through the Australia Awards. Australia will provide 35 Australia Awards Scholarships to Nepal.

These investments in education are addressing key knowledge and skills gaps which are currently limiting domestic growth and remittance incomes.

Young boy writes at his desk, 

with other children in the background A student at a primary school in Pokhara, Nepal (credit: DFAT).

Australian aid will build effective governance through:

  • support of a World Bank managed multi-donor trust fund designed to strengthen the Government of Nepal’s public financial management institutions. Projects in 2014-15 will include updating Nepal’s financial reporting standards, monitoring education expenditure, and strengthening the voice of civil society to demand better public financial management.

Archived details of expenditure for this program for 2013–14 can be found here.

Archived details of expenditure for DFAT’s aid program, following the Government’s announcement on 18 January 2014 to revise the aid budget, can be found here.


Results to 30 June 2012

  • 11,400 children of below 12 months of age immunised with basic essential vaccines.
  • 4,600 deliveries at health posts, centres or hospitals attended by skilled birth attendants.
  • 16 additional skilled birth attendants trained.
  • Through 65 community managed water schemes, 31,444 individuals have access to safe drinking water and 31,588 individuals have increased access to basic sanitation.

Commitments 2012-2013

  • 13,600 children below 12 months of age will be immunised with basic essential vaccines.
  • 5940 pregnant women will deliver at health institutions in attendance of skilled birth attendants.
  • 33 new skilled birth attendants will be trained.
  • Through 45 community managed schemes, 31,800 individuals will have access to safe drinking water and basic sanitation.


Results to 30 June 2012

  • 39,729 children provided with textbooks.
  • 40,576 children (21,099 female and 19,477 male) enrolled in basic education.
  • 10,000 enrolled in secondary education.
  • 40 classrooms built or upgraded.
  • 23,212 students (18,732 female and 4,480 male) provided with financial support.
  • 2,104 students (1,065 female and 1,039 male) provided with nutritional support.
  • 1,283 teachers trained (441 female, 842 male).
  • Since 2007, 150 individuals have been given Australia Awards for tertiary education in Australia.

Commitments 2012-2013

  • 50,000 students from grade 1 to 12 will be provided with free textbooks.
  • 40 classrooms built or upgraded.
  • 23,212 students (18,732 female and 4,480 male) provided with financial support.
  • 2,104 students (1,065 female and 1,039 male) provided with nutritional support.
  • 1,423 teachers trained (490 female, 933 male).
  • For earthquake resistance, additional grants to retrofit 107 schools will be provided.
  • 55 students will study in Australia in 2013 under Australia Awards.

Economic development

Results to 30 June 2012

  • An additional 450 individuals having accessed financial services – of them 300 (67 per cent) were women.
  • An additional 1,030 individuals with increased income through micro-entrepreneurship development – of them 700 (68 per cent) were women.

Commitments 2012-2013

  • An additional 2,490 micro-entrepreneurs will have access to financial service (60 per cent women and 40 per cent marginalised groups).
  • An additional 3,320 micro-entrepreneurs will have increased incomes (60 per cent women and 40 per cent marginalised groups).


Results to 2012

  • Australian support in 2010-11 assisted the World Food Program provide emergency food relief to up to one million people, where their immediate food supply had been disrupted due to drought, displacement, climate change or other crises.

Commitments 2012-2013

  • In 2012 Australia will provide $4.4 million to WFP for Nepal as part of core funding which will assist to meet the food supply needs of 53,800 Bhutanese refugees in Nepal.

heading foldWhy we give aid


More than half of Nepal’s population live in poverty. Poor access to health and education, low literacy rates, limited agricultural productivity, malnutrition and inequities resulting from traditional social structures limit Nepal’s ability to make gains in social development. Delivery of national services is across one of the most difficult terrains in the world.

Australia’s diplomatic relationship with Nepal spans over 50 years. Our presence allows us to assist during Nepal’s frequent natural disasters and in post-conflict development.

Find out more about why we give aid to Nepal


heading foldHow we give aid

Australia works through trusted partners in Nepal to support the government in delivering effective health and education services for all, access to clean water and sanitation, and support for rural livelihoods.

Find out more about how we give aid to Nepal

Read Australia's Development Cooperation with South Asia: Framework for 2003- 2007

Read the Nepal Aid Program Performance Report 2013-14


heading foldProgress Against MDGs

  • Eradicate extreme hunger & poverty
  • Achieve universal primary education
  • Promote gender equality and empower women
  • Reduce child mortality
  • Improve maternal health
  • Combat HIV/AIDS, malaria and other diseases
  • Ensure environmental sustainability

Demographic and development statistics for Nepal


Last reviewed: 28 October, 2014