While the government is struggling with revenue collection, it is also not able to get foreign assistance as expected. The commitments of foreign loans and grants to the government have declined by 24.09 percent in the first 11 months of the current fiscal year. With only two weeks left to end the fiscal year, the government has been able to receive foreign assistance commitments of Rs 170.51bn in this fiscal year. Bilateral and multilateral donors had given aid commitments of Rs 224.64bn during the first 11 months of the last fiscal year. The government in the current fiscal year budget has initially targeted to receive Rs 297.71bn in foreign grants and loans for this fiscal. However, it reduced the target to Rs 209bn during the mid-term review of the budget.

According to the Finance Ministry, it has entered into an agreement with foreign donor agencies to take loans and grants for different 22 projects and programs till mid-June. Of the total assistance, Rs 129.84bn is the loan while Rs 40.67bn is grant.

The statistics of the Finance Ministry show commitment to both loans and grants has declined in this fiscal. However, grant commitments have declined by 55 percent in this fiscal compared to the last fiscal. Of the total aid commitment received in this fiscal, the largest commitment is from the World Bank (43 percent), followed by ADB (25.3 percent, the United Kingdom (13 percent), and Japan (10 percent). The government has prioritized receiving foreign aid in the form of budget support which Nepal can utilize in its priority areas. The government’s International Development Cooperation Policy (DPC)-2019 has highlighted that budget support is the country’s most preferred official development assistance modality. According to the ministry, development policy credit (DPC) worth Rs 12bn has been received from the World Bank for Green, Resilient, and Inclusive Development (GRID). In August last year, the two sides signed a  concessional financing agreement of $100m (equivalent to Rs. 12.7bn) for the GRID. The proposed budgetary support aims to support improvements in the enabling environment in Nepal toward green, climate-resilient, and inclusive development. This is the first in a programmatic series of three concessional loans on GRID, according to the World Bank. Likewise, the ministry said that the government also received Rs 3bn from the Asian Development Bank under its policy-based lending heading which is also budgetary support. The government and the World Bank in the last week of May signed a financing agreement for a $120m concessional loan from the International Development Association and a grant agreement for $19.7m from the Global Partnership for Education for the School Sector Transformation Program (SSTP) Operation, which support the implementation of the government's flagship School Education Sector Plan. The government also signed a $140m agreement with the World Bank for the Digital Nepal Acceleration (DNA) Project. The other multilateral lender, Asian Development Bank (ADB) in the last week of June approved a $50m loan to support the implementation of policy reforms by the government of Nepal to help improve its domestic and international trade. The ADB on May 17 approved a $300m loan to improve transport connectivity of the Kakarbhitta–Laukahi road in Nepal to international trade routes, particularly to India and Bangladesh. Amid declining revenue collection, the government has sought $200m from the Asian Development Bank in budgetary support to finance the resource gap. With the government struggling to maintain a balance on fiscal management, Finance Minister Prakash Saran Mahat on May 11 requested development partners for loans and substantial grants to Nepal. Mahat had made such a request during a discussion with the international development partners, saying that as Nepal has been affected by global climate change despite the country's negligible carbon emission, the aid should also be mobilized in the form of grants.