Kathmandu: The Ministry of Finance has instructed project implementing partners to suspend the implementation of four projects funded under the grant cooperation between the Government of Nepal and the United States Agency for International Development (USAID) for 90 days.

In a press release issued today, the Ministry directed that no activities be carried out that could result in financial liabilities in projects co-financed by USAID during this period. The decision follows a letter from USAID Nepal requesting the postponement of grant assistance for 90 days. This assistance is part of the Development Objective Agreement signed between Nepal and USAID on May 5, 2022.

The affected projects include the USAID Health Direct Financing Project, the USAID Agriculture Direct Financing Project, the USAID Education Direct Financing Project, and the USAID Inclusive Policy Direct Financing Project.

The Ministry has advised all concerned agencies not to undertake any activities that would create financial obligations for the funding agency during this temporary suspension. However, Joint Secretary Mahesh Bhattarai clarified that activities in projects funded solely by the Government of Nepal will not be affected by the directive.