Nepal: Fifth Review Under the Extended Credit Facility Arrangement and Request for Modification of a Performance Criterion-Press Release; Staff Report; and Statement by the Executive Director for Nepal
IMF Staff Country Reports, March 18, 2025
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- Nepal: Fifth Review Under the Extended Credit Facility Arrangement and Request for Modification of a Performance Criterion-Press Release; Staff Report; and Statement by the Executive Director for Nepal
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Bibliographic details
- Published: March 18, 2025
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9798229004336.002
Overview and recent context
- Publication date: March 18, 2025
- Pages: 96
- Series: Country Report No. 2025/066; Volume: 2025; Issue: 066
- DOI: https://doi.org/10.5089/9798229004336.002
- Stock No: 1NPLEA2025001; ISBN: 9798229004336; ISSN: 1934-7685
- Context: Nepal completed its Fifth Review under the Extended Credit Facility (ECF) Arrangement amid a challenging political environment and disruptions caused by the September 2024 floods.
Macroeconomic outlook and drivers of growth
- Growth recovery is expected to continue in FY2024/25.
- Growth support factors identified:
- Increased capital spending, including on reconstruction following floods.
- An accommodative monetary policy stance.
- Additional hydropower generation.
Monetary and external stability guidance
- Recommended monetary policy approach:
- Maintain the current cautious, data-driven approach to preserving price and external stability.
Fiscal policy, public investment, and revenue
- Fiscal priorities:
- Execute the planned increase in capital spending to support domestic demand and medium-term growth prospects.
- Modernize public investment management to improve effectiveness of capital spending.
- Revenue and sustainability:
- Domestic revenue mobilization is needed for development spending and to preserve medium-term fiscal sustainability.
Social protection and inclusion
- To support the most vulnerable:
- Expand eligibility for the child grant.
Governance and anticorruption
- Ongoing efforts recommended:
- Improve the anticorruption framework.
- Enhance anticorruption institutions by amending the corresponding legal acts.
Subjects and keywords highlighted in the report
- Subjects: Anti-money laundering and combating the financing of terrorism (AML/CFT), Credit, Crime, Expenditure, Financial statements, Money, Public financial management (PFM), Revenue administration.
- Keywords: Anti-money laundering and combating the financing of terrorism (AML/CFT), Credit, ECF arrangement, Financial statements, Global, implementation of the prior action, issuance of the Request for Proposals, Nepali authorities, staff appraisal.
Source: IMF Staff Country Report — Nepal: Fifth Review Under the Extended Credit Facility Arrangement and Request for Modification of a Performance Criterion (Country Report No. 2025/066, March 18, 2025).
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