Nepal's Finance Minister, Dr. Swarnim Wagle, and World Bank Group President Ajay Banga discussed raising around $1 billion to help Nepal recover from this year's floods. They met in Washington on Monday, October 6, 2026. The money would go to reconstruction, insurance and social protection. However, this is not yet an approved or paid package.
The minister's office said the talks covered "the mobilisation of around USD 1 billion for insurance and social protection," along with rebuilding the infrastructure damaged by the floods. The meeting also looked at wider economic reforms and investment in infrastructure.
Banga expressed sympathy over the disaster. He promised significant World Bank support for rebuilding and said Nepal needs more investment in infrastructure and more jobs, according to reports of the meeting.
In late August, the World Bank's country director for Nepal, David Sislen, told the Finance Ministry that up to Rs 25 billion could be raised from various sources as emergency aid. That is about $180 million to $200 million, depending on exchange rates.
On September 23, the bank said it had made up to $170 million in emergency financing available. It said the money would support Nepal's immediate response and begin restoring critical infrastructure and services. "We are prepared to provide further resources if there are additional needs," it said. The World Bank, the Asian Development Bank and the United Nations also carried out a rapid damage assessment to find out what recovery will need.
The breakdown of the $1 billion has not been shared. It is not known how much would be grants and how much loans, or how the money would be split between rebuilding, insurance and social protection. There is also no timeline for approval or payment. Other partners, such as the ADB or donor countries, might co-finance parts of it. Nepal has reportedly said it prefers grants to new loans for flood recovery.
If it goes ahead, a package of this size would shape Nepal's budget, the speed of rebuilding and how well families are protected against future disasters. It would also mark a shift from short-term emergency help to a multi-year recovery plan. The World Bank already has about $2.3 billion in active commitments in Nepal as of March 2026.
