The International Monetary Fund (IMF) and Nepali authorities have reached a staff-level agreement on the sixth review of Nepal’s economic reform program under the Extended Credit Facility (ECF), unlocking $42.7 million in funding.
The agreement, pending IMF Executive Board approval, aims to bolster Nepal’s growth and financial stability.
Nepal’s economy is projected to strengthen in FY2025/26, supported by policy measures to boost private investment and infrastructure spending. However, challenges like rising non-performing loans and global uncertainties remain.
“The ECF-supported reforms are critical to preserving macroeconomic stability and strengthening Nepal’s policy framework,” said IMF mission Chief Sarwat Jahan. “Timely execution of reforms, including financial sector improvements, will be key.”
The funding will bring total IMF support under the ECF to $331.8 million, aiding Nepal’s efforts toward sustainable growth and poverty reduction.
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