Kathmandu: The Executive Board of the International Monetary Fund (IMF) completed the Article IV Consultation and the seventh and final review under the Extended Credit Facility (ECF) for Nepal on June 5. This allows the authorities to withdraw a disbursement of USD 42.9 million. The Board stated that Nepal has made tangible progress in implementing reforms under the program which has helped preserve macroeconomic and financial stability and build buffers to mitigate the impact of global shocks and domestic uncertainty on economic activity.
The growth momentum is expected to pick up, underpinned by reduced domestic uncertainty following the post-elections smooth transition of power and a supportive policy mix for FY2026/27. The outlook is subject to downside risks, given heightened global uncertainty and domestic vulnerabilities.
The IMF also stated that going forward, Nepal will benefit from sustaining the reform momentum and institutionalizing the progress made over the course of the program. The IMF will continue close engagement with Nepal through Post-Financing Assessment, Article IV consultations on the standard 12-month cycle, and CD delivery.
