Delays in infrastructure projects have resulted in low utilization of foreign assistance. Of the Rs 261.7 billion allocated by 10 development partners for fiscal year 2025/26, only Rs 28.47 billion had been spent by the mid-term review. The Asian Development Bank recorded 7.61 percent utilization of its Rs 117 billion allocation, while the World Bank’s spending stood at 14.08 percent. No expenditure has been reported from the Asian Infrastructure Investment Bank. The Ministry of Finance cited inadequate project preparedness, weak coordination among agencies, and frequent staff transfers as key reasons for the poor performance. In response, the government has introduced a “Project Readiness Filter” and begun digitizing forest clearance procedures to accelerate implementation.
