More grants, not loans, says leader after floods in Nepal

By the Editorial Team · Sunday, September 27, 2026

Nepal’s Prime Minister Balendra Shah urged the international community at the UN to provide grant aid instead of loans to support recovery from the glacier flood that killed at least 1,450 people and devastated infrastructure. He highlighted that rebuilding will cost about 10% of Nepal’s GDP and called for regional cooperation to enhance climate resilience and disaster monitoring in the Himalayas.

Nepal’s Prime Minister Balendra Shah has called for increased international grant aid rather than loans to support the country’s recovery following a devastating glacier flood that claimed at least 1,450 lives. Speaking at the United Nations General Assembly in New York on Thursday, Shah emphasized that Nepal’s reconstruction needs amount to approximately 10% of its gross domestic product, underscoring the financial strain such climate-induced disasters impose on vulnerable nations.

The flood occurred in late August after a glacier collapsed near the border between Nepal and China’s Tibet Autonomous Region. The resulting landslides and flash floods caused widespread destruction, sweeping away roads, bridges, schools, homes, and livelihoods in mountain communities. Shah described the event as a stark warning of escalating climate risks that threaten Nepal’s developmental gains.

“An answer cannot simply be another mega loan or a patchwork of small grants when a climate-driven disaster destroys the infrastructure of a poor country,” Shah stated. He appealed for adequate grant-based support from the international community to aid Nepal’s recovery without burdening it with additional debt.

Beyond financial assistance, Shah advocated for enhanced regional cooperation among Nepal, India, and China to improve climate resilience. He proposed establishing a Himalayan mechanism for sharing satellite data, monitoring glacial lakes, strengthening early-warning systems, and coordinating disaster responses across national borders.

Despite ongoing search and recovery efforts weeks after the incident, over 6,000 people remain missing in the affected region, with authorities acknowledging that many may never be found.

In response to the disaster, the World Bank recently announced emergency financing of up to US$170 million to assist Nepal in immediate relief efforts and kickstart the recovery process. The announcement highlights the international commitment to supporting Nepal, although the country’s leadership continues to emphasize the critical need for grant-based rather than loan-based aid to manage climate-related catastrophes effectively.

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.