Nepal: Sixth Review Under the Extended Credit Facility Arrangement-Press Release; Staff Report; and Statement by the Executive Director for Nepal
IMF Staff Country Reports, October 6, 2025
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- Nepal: Sixth Review Under the Extended Credit Facility Arrangement-Press Release; Staff Report; and Statement by the Executive Director for Nepal
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Bibliographic details
- Published: October 6, 2025
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9798229026901.002
Economic activity and outlook
- Economic activity has continued to gradually recover, underpinned by a rebound in construction and manufacturing, continued expansion of hydropower, and a good harvest that helped offset the impact of the September 2024 floods.
- Growth in FY2024/25 is estimated to reach 4.3 percent, although still below potential.
- Inflation is expected to remain within the Nepal Rastra Bank’s target of about 5 percent.
External sector
- The external position has strengthened, with robust growth in exports, remittances, and tourism outpacing the recovery in imports.
Financial sector and risks
- Despite improved growth, non-performing loans have continued to rise, eroding bank capital.
- The financial health of the savings and credit cooperatives remains challenging.
Program context and themes
- The content unit reports on the Sixth Review under the Extended Credit Facility arrangement and presents staff analysis and a statement by the Executive Director for Nepal.
- Subject areas covered include: Credit, Debt sustainability analysis, Expenditure, External debt, Money, Public debt, Revenue administration.
- Keywords and thematic focus include: Asia and Pacific Department, coalition government, Credit, Debt sustainability analysis, downside risk, ECF-supported program, Global, investor confidence, loan portfolio review, reform agenda, staff appraisal, supplementary letter of intent, youth employment.
Content in this bundle
- 1nplea2025002-source-pdf