Nepal's private sector steps in after USAID cuts $329 million in aid

September 20, 2026 at 12:44 PM2 min

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Nepal's private sector is building economic momentum after the U.S. Agency for International Development cut an estimated $329 million in humanitarian aid. The cuts led to an estimated 30,000 direct job losses, according to former USAID Nepal acting program office director Stuti Basnyet. Basnyet co-founded Aadyanta Advisory, which supported nearly 400 young Nepali innovators and founders in its first year.

Key Facts

USAID cut an estimated $329 million in humanitarian aid to Nepal.
The cuts led to an estimated 30,000 direct job losses in Nepal.
Stuti Basnyet co-founded Aadyanta Advisory, which supported nearly 400 young Nepali innovators and founders in one year.
Nepal's GDP per capita is $1,447, ranking 124th of 145 countries tracked by the Harvard Kennedy School Growth Lab.
More than 40% of Nepal's population is between the ages of 16 and 40.

USAID Withdrawal

The Department of Government Efficiency, led by Elon Musk, slashed an estimated $329 million in humanitarian aid to Nepal. Stuti Basnyet, acting program office director for USAID in Nepal since 2024, described the aftermath as a period of denial and deep grievance. USAID's closure led to an estimated 30,000 direct job losses in the country. The cuts eliminated foundational educational programs, including early grade reading support across all 35 districts, teacher training, and educational materials. The U.S. had been Nepal's first bilateral aid donor since 1951.

Private Sector Response

Basnyet co-founded Aadyanta Advisory, a Nepal-based strategic advisory firm, in 2025. The firm supported nearly 400 young Nepali innovators and founders in its first year. Aadyanta Advisory is one of several efforts to boost Nepal's economy, many in partnership with the U.S. embassy. Basnyet said she continues to advocate for locally led, globally connected economic development efforts.

Demographic Advantage

Nepal is sandwiched between India and China, two of Asia's largest economies. More than 40% of Nepal's population is between the ages of 16 and 40, creating a youth bulge of talent and labor. Nepal's GDP per capita is $1,447, ranking 124th of 145 countries tracked by the Harvard Kennedy School Growth Lab. A series of Gen Z-led protests last year led to a new government headed by 36-year-old former rapper Balen Shah.