Relationship dossier
Nepal
United States
Relationship assessment
A sustained development partnership shaped by U.S. assistance and Nepal’s participation in the Millennium Challenge Corporation compact.
Nepal toward United States
+35Nepal’s parliament ratified the Millennium Challenge Corporation compact in February 2022, enabling a major bilateral development program focused on electricity transmission and road maintenance. Nepal has also engaged with U.S. development and educational programs.
United States toward Nepal
+45The United States has provided development assistance to Nepal through programs including USAID and offered a $500 million Millennium Challenge Corporation grant for electricity transmission and road maintenance. U.S. support has also included disaster relief and cooperation on democratic development.
Overall relationship
+40The relationship has enduring development ties, including substantial U.S. assistance and the bilateral Millennium Challenge Corporation compact. Nepal’s ratification of the compact demonstrates concrete government cooperation, though domestic debate over its terms has been a source of friction.
How to read these scores
Scores are rough judgments, not objective measurements or current verification. Directional scores describe government policy and conduct, not public opinion. The overall score is an independent estimate, never an average.
- −100
- Extreme sustained hostility
- −50
- Substantially adversarial
- 0
- Mixed or neutral, supported by knowledge
- +50
- Substantially cooperative
- +100
- Exceptionally close sustained partnership
“Not assessed” means there is no recorded score. Pair existence makes no claim about diplomatic recognition or established relations.
Relationship context
Overview
Nepal and the United States have a sustained development and diplomatic relationship, including U.S. assistance and Nepal’s participation in major bilateral programs. Nepal’s parliament ratified the Millennium Challenge Corporation compact in 2022, following domestic debate over its terms. The United States has provided substantial development support, including a $500 million compact grant focused on electricity transmission and road maintenance.
Areas of tension
- Domestic controversy in Nepal over the terms and implications of the Millennium Challenge Corporation compact.
Key developments
Nepal and the United States signed a Millennium Challenge Corporation compact providing a $500 million U.S. grant for electricity transmission and road maintenance.
Nepal’s parliament ratified the Millennium Challenge Corporation compact after prolonged domestic debate.
Major uncertainties
- The pace and scope of implementation of the Millennium Challenge Corporation compact are unclear.
- The scale and continuity of U.S. development assistance across individual programs are uncertain.