The Executive Board of the International Monetary Fund (IMF) has completed the sixth review of Nepal’s performance under the Extended Credit Facility (ECF) program. The review, concluded on Ashwin 15, 2082 (October 1, 2025), has approved the disbursement of $43 million to Nepal. With this tranche, the total amount received by Nepal under the ECF program has reached $341.2 million.

According to the IMF, Nepal has made significant progress in implementing reform measures under the ECF arrangement, which has helped revitalize the economy and strengthen overall macroeconomic stability.

The Fund also noted that recent socio-political changes following the Gen Z-led anti-corruption protests have increased awareness of governance and accountability issues, potentially laying the groundwork for long-term institutional improvements.

In its official statement, the IMF said:

“Despite multiple political, social, and economic challenges, Nepal’s economy is progressing along the path of recovery, and this momentum is expected to continue through the current fiscal year 2082/83. The increase in capital expenditure in the national budget, measures to boost private sector confidence, and flexible monetary policies have all supported this positive trajectory.”

The IMF projected that inflation will remain within Nepal Rastra Bank’s target of around 5%, while noting improvements in productivity, imports, revenue mobilization, and infrastructure investment.

However, the Fund cautioned that Nepal’s economy is not yet free from risks, emphasizing the need for sustained reforms.

“The key challenges to Nepal’s growth include weak capital expenditure execution, vulnerabilities in the financial sector, natural disasters, social unrest, political uncertainty, and global trade tensions. Addressing these issues will be crucial to ensuring durable economic stability,” the report stated.

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