Kathmandu__
The International Monetary Fund (IMF) has completed the seventh review of Nepal’s Extended Credit Facility (ECF) program and is preparing to provide additional financial assistance to the country.
Following the IMF mission to Kathmandu, Nepal is set to receive approximately US$43.2 million (equivalent to SDR 31.302 million) upon approval by the IMF Executive Board.
An IMF team led by Sarwat Jahan visited Nepal from February 6 to 20, holding discussions with government officials on program implementation progress and future policy priorities. The mission also concluded the 2026 Article IV Consultation and reached a staff-level agreement with the authorities on policies under the ECF arrangement.
The additional disbursement will be made after formal approval by the IMF Executive Board. Once released, total financial support to Nepal under the ECF program will amount to approximately US$384.4 million.
According to the IMF, Nepal has made overall progress in implementing the ECF program despite a challenging domestic economic environment. Most structural and policy conditions have been met, except for the target related to the child grant program.
The review particularly acknowledged progress in implementing the customs reform strategy, conducting asset quality reviews in the banking sector, and advancing financial sector strengthening measures. It also highlighted as significant progress the drafting of amendments to the Nepal Rastra Bank Act and the registration of the bill in Parliament, in line with IMF safeguard assessment and financial stability recommendations.
With Executive Board approval expected, Nepal is likely to receive the additional financial assistance within the current fiscal year.