Kathmandu. KATHMANDU: The International Monetary Fund (IMF) has decided to provide assistance worth approximately USD 42.9 million to Nepal under the Extended Credit Facility (ECF) programme.

According to the IMF, the assistance has been made to Nepal as it has made significant achievements in the area of structural reforms due to the sluggishness in economic activities.

Modernization of the monetary operating system, improvement in supervision of the financial sector, completion of debt portfolio review, improvement in financial structure and transparency, strengthening of public investment management, anti-money laundering structure, legal reforms, and increasing accountability of public institutions have also improved in the area of good governance

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According to the details released by the IMF Executive Board after its meeting on June 5, Nepal made significant progress in the area of economic reform under the program. The International Monetary Fund (IMF) has projected that Nepal’s economic growth will be 3 percent in the current fiscal year 2025÷26. Growth is expected to be lower due to disruptions caused by political protests, lower agricultural production, sluggish private investment and the impact of the Middle East war.

The total assistance received by Nepal has reached approximately 384.1 million US dollars. The ECF programme implemented by the Executive Board of the IMF will remain in place until July 11, 2026. The 38-month ECF programme for Nepal was approved on January 12, 2022. Under the programme, Nepal had access equivalent to 180 per cent of the quota of USD 282.4 million.

Nepal has pledged to maintain fiscal stability, strengthen foreign exchange reserves, improve public financial management and undertake economic reforms through ECF programme with the IMF.