IMF expresses commitment to support Nepal’s economic stability

Kathmandu: During a meeting with the current Minister of Finance while on his visit to the United States, the Assistant Director of the IMF reaffirmed their commitment to assist Nepal in maintaining economic stability.

In a discussion held in Washington DC, the Minister highlighted Nepal’s efforts to ensure economic stability amidst challenges. He emphasized that many economic indicators this year have shown positive trends compared to the previous year.

The Minister attributed this improvement to the contributions from the energy and tourism sectors and noted that the situation of foreign exchange reserves has significantly improved. However, he acknowledged that internal pressures persist when adequate spending does not result in satisfactory revenue collection.

He also mentioned the efforts made since taking charge of the Finance Ministry last month to increase capital expenditure and revenue collection. He expressed gratitude to the IMF for its continuous support in facilitating favorable loans, policy advice, and capacity building for Nepal.

The IMF has been a vital partner in Nepal’s economic reforms since its establishment in 1976. The Minister recalled the significant support received during the structural adjustment facility of the 1980s and the crisis caused by the 2015 earthquake and the COVID-19 pandemic.

The Minister requested further support from the IMF in creating a conducive environment for investment during the upcoming International Investment Conference scheduled for 16th and 17th Baisakh. He highlighted the importance of IMF’s role in boosting investor confidence amidst Nepal’s favorable investment climate.

In their meeting, the IMF expressed its readiness to assist Nepal in financial stability, revenue management, and banking sector reforms according to its mandate. They also discussed the amendments to the Nepal Rastra Bank Act and proposed to recommend three names for the Governor’s position, subject to approval by the Council of Ministers, as per the existing law.

In this regard, the Minister expressed confidence that with the IMF’s continued support, Nepal would achieve sustainable economic growth and financial stability.