IMF approves final review of Nepal’s ECF programme, clears $42.9 million disbursement – The Himalayan Times – Nepal’s No.1 English Daily Newspaper

KATHMANDU, JUNE 9

The International Monetary Fund (IMF) has completed the final review of Nepal’s Extended Credit Facility (ECF) programme, paving the way for the disbursement of approximately $42.9 million in financial assistance.

In a statement issued following its Executive Board meeting on June 5, the IMF said Nepal had made significant progress in implementing economic and structural reforms despite challenges posed by sluggish economic activity.

The fund cited reforms in monetary operations, financial sector supervision, loan portfolio reviews, fiscal transparency, public investment management, anti-money laundering frameworks, legal reforms and governance improvements as key achievements under the programme.

The IMF has projected Nepal’s economic growth at 3 percent for fiscal year 2025/26, citing disruptions caused by political protests, lower agricultural output, weak private investment and the impact of the ongoing conflict in the Middle East.

With the latest approval, Nepal’s total access under the ECF programme has reached about $384.1 million. The 38-month programme, approved in January 2022, will remain in effect until July 11, 2026.

Under the facility, Nepal committed to maintaining macroeconomic stability, strengthening foreign exchange reserves, improving public financial management and advancing broader economic reforms.