Nepal and the United States on Thursday signed a $659 million new “development objective” agreement.

The grant [equivalent to Rs79.71 billion] for the next five-year period will support Nepal’s goal of graduating to a middle-income country. Nepal plans to graduate from the Least Developed Country category by December 2026.

This assistance agreement, through the US Agency for International Development (USAID), outlines the broad development areas of the US and Nepal’s cooperation and collaboration, according to a press statement issued by the Finance Ministry.

Partnering with the Nepal government, civil society, and the private sector, the US assistance will advance Nepal’s sustainable development through strengthened democratic governance, enterprise driven economic growth and increased resilience for communities most at-risk to natural disasters and climate change, the ministry said. “The amount will be transparently implemented through both on and off treasury modalities.”

According to the ministry, USAID will develop projects under this assistance agreement in collaboration with line ministries and implemented in accordance with the government rules and regulations.

Ishwori Prasad Aryal, Joint Secretary and Head of International Economic Cooperation Coordination Division at the Finance Ministry, and Sepideh Keyvanshad, USAID/Nepal Mission Director, signed and exchanged the agreement on behalf of their respective governments.

Delivering a short remark following the signing ceremony, Aryal, said, “In 1951, after signing the Point Four program, the United States became the first bilateral donor to Nepal. This began a 70 plus year relationship of trust, mutual respect, and commitment to the people of Nepal.”

He added that Nepal has greatly benefited from the financial and technical assistance extended by the United States to help drive Nepal’s socioeconomic development.

Keyvanshad said, “Today we add a new chapter to our long-standing partnership with the Government of Nepal and the Nepali people. We look forward to continuing the US government’s long-term commitment to support activities that strengthen Nepal’s democracy, governance, and economic growth across the country.”

This year, Nepal and the United States are celebrating 75 years of bilateral ties.