Nepal: Second and Third Reviews Under the Three-Year Arrangement Under the Poverty Reduction and Growth Facility, Requests for Waiver of Performance Criteria and Extension of the Arrangement
IMF Staff Country Reports, November 16, 2006
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- Nepal: Second and Third Reviews Under the Three-Year Arrangement Under the Poverty Reduction and Growth Facility, Requests for Waiver of Performance Criteria and Extension of the Arrangement
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Bibliographic details
- Published: November 16, 2006
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781451830057.002
Summary findings
- Major political developments have taken place in Nepal since the Executive Board concluded the Article IV Consultation in January 2006.
- The Koirala government is keen on early resumption of the IMF-supported program to help maintain macroeconomic stability.
- The international community has welcomed the peace process and has extended financial aid.
- Progress on structural reforms was slow owing to political uncertainties, an unsettled security environment, and inertia in policy implementation.
- The authorities outlined an economic program for 2006/07 consistent with Poverty Reduction Strategy Paper (PRSP)/Poverty Reduction and Growth Facility (PRGF) objectives.
Macroeconomic program and policy intent
- Authorities proposed an economic program for 2006/07 aligned with PRSP/PRGF objectives.
- Early resumption of the IMF-supported program is prioritized by the Koirala government to maintain macroeconomic stability.
- International financial support has been forthcoming in response to the peace process.
Structural reform implementation challenges
- Slow progress on structural reforms attributed to:
- Political uncertainties.
- An unsettled security environment.
- Inertia in policy implementation.
Metadata and classification (as stated)
- Publication date: November 16, 2006
- Pages: 75
- Volume: 2006
- Issue: 407
- Series: Country Report No. 2006/407
- DOI: https://doi.org/10.5089/9781451830057.002
- Stock No: 1NPLEA2006004
- ISBN: 9781451830057
- ISSN: 1934-7685
- Subject: Banking, Commercial banks, External debt, Inflation, Monetary base, Money, Oil prices, Prices, Public debt
- Keywords: communist party, constituent assembly, constituent assembly election, CR, Global, IMF staff representative, Inflation, inflation outlook, ISCR, Maoist, Monetary base, Nepalese authorities, Oil prices, South Asia, SPA government, structure of the constituent assembly
International Monetary Fund. "Nepal: Second and Third Reviews Under the Three-Year Arrangement Under the Poverty Reduction and Growth Facility, Requests for Waiver of Performance Criteria and Extension of the Arrangement", IMF Staff Country Reports 2006, 407 (2006).