The International Monetary Fund (IMF) has approved an additional $42.7 million (approximately Rs 5.84 billion) in support for Nepal under the sixth installment of the Extended Credit Facility (ECF), citing satisfactory progress in the country’s economic reform program.
A mission led by IMF Mission Chief Ms. Sarwat Jahan visited Kathmandu from May 26 to June 10, 2025, for discussions with Nepali authorities. Following the visit, a staff-level agreement was reached on the policies and reforms necessary to complete the sixth review of the ECF arrangement. The agreement is subject to approval by the IMF Executive Board.
Once approved, the latest disbursement will bring total financial assistance to Nepal under the ECF to $331.8 million. The ECF arrangement, which Nepal entered in 2022 amid a sharp decline in foreign exchange reserves and a weakened balance of payments, is valued at $395.9 million—equivalent to 180 percent of Nepal’s quota under the IMF’s Special Drawing Rights (SDR).
The IMF provides the ECF in phased disbursements over four years to support budget financing and macroeconomic stability. Following the fifth review, Nepal received $41.8 million (approximately Rs 5.81 billion).
In her statement, Jahan commended Nepal’s ongoing efforts in implementing ECF-backed programs, while also stressing the need for continued vigilance in regulatory areas. The IMF reiterated its call for Nepal to prioritize reforms in anti-money laundering and combating the financing of terrorism (AML/CFT), especially after the country was placed on the Financial Action Task Force (FATF) grey list.
The IMF’s sustained engagement underscores Nepal’s commitment to fiscal and structural reforms, although successful implementation remains key to restoring economic stability and building resilience.
