IMF delegation reviews Nepal’s fiscal progress to allocate $42m as final instalment of ECF

KATHMANDU: A delegation from the International Monetary Fund (IMF) met with Finance Minister Barsha Man Pun today. 

The delegation, led by Tidiane Kinda, Deputy Division Chief for the Asia and Pacific Department and the IMF Mission Chief for Nepal, visited the Finance Minister at his office in Singha Durbar, Kathmandu. 

During the meeting, they discussed the allocation of the fourth instalment of loan assistance under the Extended Credit Facility (ECF) to Nepal, as reported by the Minister's Secretariat. 

It's worth noting that in January 2022, the IMF Executive Board agreed to provide $398.08 million to Nepal under the ECF during the Covid-19 pandemic.  

Out of the total promised assistance, Nepal is awaiting the receipt of $42 million, equivalent to Rs 5,590 million, as the fourth and final instalment. 

Before deciding to allocate the fourth instalment of the ECF, the IMF reviews the progress over the implementation of commitments. The IMF delegation is currently in Nepal for this purpose. During the meeting, the Finance Minister informed the IMF delegation that economic stability, good governance, and fiscal discipline are the government's top priorities.  

Dr Kinda stated that the review of the ECF for Nepal is nearing completion and the remaining amount will be released soon. He commended Nepal's efforts in advancing its fiscal and monetary policy and maintaining fiscal discipline. 

Nepal has been utilising the amount it received from the IMF under the ECF, keeping it under the budgetary assistance headings.