ADB–Nepal partnership deepens: A human-centered vision for youth, private sector, and resilience

KATHMANDU: It is with great optimism and pride that I share reflections on a new chapter in the development partnership between the Asian Development Bank (ADB) and the Government of Nepal. The launch of our Country Partnership Strategy (CPS) 2025–2029, under the theme “A Partnership for Private Sector–Led Growth, Youth Employment, and Resilience”, marks a critical moment in ADB’s long-standing engagement with Nepal—a partnership rooted in trust, shared values, and a common goal of delivering prosperity for all.

On June 17 this year, ADB’s Board of Directors endorsed this forward-looking strategy. But beyond policy and frameworks, this strategy reflects something more meaningful: our collective aspiration to empower the people of Nepal, especially its youth, entrepreneurs, and communities vulnerable to the challenges of climate change.

A Resilient Nation with Aspirations to Soar
Nepal’s journey over the past decades has been one of courage and persistence. With an average economic growth rate of 4.3% over the past 30 years, and substantial poverty reduction along the way, Nepal has proven its resilience time and again—even amid global economic uncertainties and natural adversities.

Yet challenges remain. Each year, around 500,000 young people enter Nepal’s labor force. Unfortunately, many find limited opportunities at home, prompting a significant outflow of youth to foreign labor markets. This trend reflects both a loss of national potential and a reminder that creating opportunities within Nepal is now more urgent than ever.

A Strategy Aligned with Nepal’s Own Vision
Our CPS aligns seamlessly with the Government of Nepal’s 16th Five-Year Plan, which champions good governance, social justice, and prosperity. These aren’t abstract policy terms—they are a call for transformation that ensures fairness, efficiency, and inclusive growth.

What makes this CPS particularly unique is how it was developed. For the first time in Nepal, ADB and the World Bank Group came together to co-design their respective country strategies. Through extensive consultations in all seven provinces and at the federal level, we listened, we learned, and we jointly designed an approach that reflects the voices of Nepal’s people, policymakers, and development actors.

This synergy between our organizations has not only fostered a shared platform for dialogue and research—it has laid the groundwork for deep collaboration in key areas such as clean energy, private sector development, job creation, and sustainable tourism.

Youth and Jobs at the Center of Economic Transformation
At the heart of our new CPS lies a very human focus: youth employability and job creation. ADB remains committed to investing in human capital—from foundational education to technical and vocational training that aligns with labor market demands. We will also support efforts to enhance the livability of Nepal’s cities, ensuring that young people see a future for themselves within the country, not outside it.

The private sector, as a powerful engine of innovation and employment, is another core pillar. ADB is stepping up its support for business climate reforms, leveraging public–private partnerships (PPPs), and expanding non-sovereign operations to catalyze private investment in sectors that matter most.

Climate Resilience: Building a Safer Future
Nepal is among the most climate-vulnerable countries in the world. Recognizing this, our CPS places a strong emphasis on climate resilience through green infrastructure, sustainable agriculture, and enhanced disaster risk management. From hydropower investments to climate-smart urban planning, we are committed to helping Nepal turn vulnerability into resilience—and risk into opportunity.

Collaboration and Gratitude
None of this would be possible without the strong and constructive partnership with the Ministry of Finance, whose insights and guidance throughout the CPS process ensured that the strategy aligns deeply with Nepal’s national priorities.

Our deep collaboration with the World Bank Group, especially in jointly preparing both the CPS and the Country Partnership Framework (CPF), reflects the shared commitment of two major development institutions to serve Nepal better—together.

Looking Ahead: A Shared Journey
As Nepal and ADB begin implementing this new strategy, we do so with humility, determination, and hope. The journey ahead is filled with challenges—but it is also rich with potential. Together—with government, partners, private sector actors, and communities—we can shape a Nepal that offers opportunity, dignity, and a sustainable future for all.

ADB remains a steadfast partner in Nepal’s development journey. We are inspired by Nepal’s vision, and we are committed to walking this path—side by side—with every citizen, every investor, and every policymaker who believes in the promise of a better tomorrow.

Mr. Arnaud Cauchois is the Country Director of the Asian Development Bank’s Nepal Resident Mission. The views he expressed during the launch of the CPS program have been presented in the form of an article.