IFAD in Nepal

Nepal was one of the first countries to benefit from IFAD loans, beginning in 1978. The 16 projects financed to date have mobilized significant resources. For every dollar lent by IFAD, an additional dollar has been committed by the government and other donors.

IFAD's strategy in Nepal – based on its Country Strategic Opportunities Programme for 2013-2018 – supports the development policies and programmes of the government and other partners, especially in relation to peace-building, reconciliation, reconstruction and economic recovery. IFAD's investments reinforce these efforts by addressing the issues of poverty, inequality and social marginalization that have been at the heart of conflict in the country.

IFAD recognizes that building sustainable livelihoods and the rural institutions that can support them – particularly in a fragile political and physical environment – is a long-term effort that requires extended support. Its interventions are designed to:

  • Stimulate income diversification and productive employment by promoting a range of economic opportunities that can bring equitable benefits both on and off the farm
  • Unleash investment by poor rural people in market-oriented activities, reducing their vulnerability to climate and other shocks by supporting instruments that can mitigate risk
  • Strengthen rural institutions, enabling them to deliver effective, accountable and climate-smart services to on- and off-farm producers on an equitable and sustainable basis. 

In particular, IFAD continues to direct its resources towards the hill and mountain areas, where poverty levels are high and access to infrastructure, services and markets is extremely limited. For maximum impact, the Nepal country programme targets two main groups: vulnerable farm households with sufficient land to develop on-farm activities as their main source of livelihood; and land-poor households and young people, including migration returnees, who can benefit from developing off-farm microenterprises.

Nepal: Environment and climate change assessment

Source: IFAD