IMF Staff Country Reports

The achievements in the third year of the Poverty Reduction Strategy Paper implementation have been satisfactory, given the difficult development environment resulting from the violent conflict and continued political instability. Nepal’s macrolevel indicators remain stable, despite growing pressure on the government budget. Nepal should continue with bolder reforms and development measures. Nepal also needs to begin planning eventual reconstruction and rehabilitation of those affected by the conflict, to be able to quickly respond to the situation when peace is established.