en grants, concessional loans and funds received through non-governmental organisations, saying these sources should not be treated as the same form of development financing.

Funding through international NGOs has also declined significantly, while bilateral assistance continues to come from major donor countries including India, China, the US and Japan. However, Wagle said Nepal has increasingly stopped accepting assistance that does not match the country's needs.

The financing environment for concessional loans is also becoming more difficult. Wagle said the lending windows of multilateral institutions such as the World Bank and Asian Development Bank (ADB) are narrowing, while financing conditions for large infrastructure projects are becoming more stringent and interest rates are rising.

He described the changing environment as a challenging period for Nepal's development financing, particularly as the country still needs substantial capital for infrastructure and other large projects.

With foreign financing becoming less reliable, the government has adopted a policy of using alternative financial instruments to mobilize private capital. Wagle said preparations are underway to introduce five to seven such instruments.

The government is also relaxing arrangements that allow people of Nepali origin living abroad to invest in Nepal, with the aim of bringing more private capital into the domestic economy.

Wagle said Nepal is therefore moving from a development model based primarily on aid toward one increasingly driven by private investment. He noted that even wealthier countries are following a similar approach.

The shift could make domestic and foreign private capital increasingly important to Nepal's infrastructure and development financing, as traditional donor resources continue to shrink.