KATHMANDU, June 11: The International Monetary Fund (IMF) has stated that Nepal is making progress in implementing programs under the Extended Credit Facility (ECF). As part of the sixth installment under the ECF, the IMF has approved an additional $42.7 million (approximately Rs 5.84 billion) in support for Nepal.
A team led by IMF Mission Chief Ms Sarwat Jahan visited Kathmandu from May 26 to June 10, 2025. During the visit, the IMF held constructive discussions with Nepali authorities.
Jahan stated that a staff-level agreement was reached between the IMF team and Nepali officials on the policies and reforms required to complete the sixth review under the ECF.
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The agreement is subject to approval by the IMF’s Executive Board. Upon completion of the review, Nepal will receive approximately $42.7 million, bringing the total financial support from the IMF to Nepal under the ECF to $331.8 million.
In her report, Jehan stated that Nepal is making satisfactory progress in the programs under the Extended Credit Facility (ECF).
Following the fifth review, the IMF had disbursed around Rs 5.81 billion (equivalent to $41.8 million) to Nepal under ECF.
Nepal had entered into the ECF arrangement in 2022 after a decline in foreign exchange reserves and a significantly weakened balance of payments. The agreement was for a total of $395.9 million—equivalent to 180 percent of Nepal’s quota under the IMF’s Special Drawing Rights (SDR).
The IMF agreed to provide this support over four years in multiple installments to help with budget financing.
During the fifth review, the IMF also emphasized the need for Nepal to remain vigilant in areas such as anti-money laundering and counter-financing of terrorism (AML/CFT), especially after Nepal was placed on the Financial Action Task Force (FATF) grey list. The IMF recommended prioritizing regulatory reforms to address these issues.
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