The International Monetary Fund (IMF) has completed its final review under the Extended Credit Facility (ECF) program for Nepal, approving approximately 42.9 million US dollars in assistance.
This decision comes in light of Nepal's notable achievements in structural reforms despite a slowdown in economic activity, the IMF stated in a press release.
The press release highlights improvements in governance, including modernization of the monetary operation system, enhanced financial sector monitoring, and increased accountability of public institutions.
Following a meeting on June 5, the IMF's Executive Board acknowledged significant progress in Nepal's economic reforms, projecting a growth rate of three percent for the fiscal year 2025/26. However, this growth is expected to be tempered by factors such as political demonstrations, reduced agricultural production, a slowdown in private investment, and the repercussions of the Middle East conflict.
To date, Nepal has received a total of approximately 384.1 million US dollars in aid under the ECF program, which is set to continue until July 11, 2026. The program, approved on 12 January, 2022, allows Nepal access to 180 percent of its quota, amounting to 282.4 million US dollars.
Nepal has committed to maintaining financial stability, bolstering foreign exchange reserves, enhancing public finance management, and advancing economic reforms.
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