NRB Governor Meets IMF for ECF Sixth Review on Economic Reforms
27th May 2025, Kathmandu
Nepal Rastra Bank (NRB) Governor Dr. Biswo Nath Paudel recently met with the International Monetary Fund (IMF) Mission Chief for Nepal, Ms. Sarwat Jahan.
NRB Governor Meets IMF
The meeting took place at NRB’s headquarters in Kathmandu. This was their first official discussion since Dr. Paudel assumed office as the new central bank governor.
Focus On ECF Sixth Review
The main topic of discussion was the sixth review under the IMF’s Extended Credit Facility (ECF). Nepal has been participating in this program to support economic reforms and financial stability. The ECF provides concessional financial assistance to low-income countries. It aims to help economies achieve macroeconomic stability and strengthen institutions.
Governor Paudel and Ms. Jahan discussed the review’s objectives and the expected deliverables. They talked about how the IMF team will evaluate Nepal’s progress. The sixth review will assess economic performance, policy implementation, and structural reforms.
Key Areas Of Discussion
The meeting included detailed conversations about Nepal’s current economic situation. Topics included fiscal management, monetary policy, inflation control, and the country’s foreign exchange reserves. Ms. Jahan and her team expressed interest in how well Nepal is implementing its monetary and fiscal strategies.
They also examined the country’s revenue structure, government expenditure, and financial sector resilience. According to the NRB, the IMF team wants to ensure that Nepal meets its reform goals as planned.
Transition In Leadership And Timing
This high-level meeting comes shortly after Dr. Paudel is appointed governor. The IMF has worked closely with NRB in the past. However, this meeting signaled the beginning of a new phase of cooperation. The timing of the meeting aligns with Nepal’s sixth ECF review, which will determine further support from the IMF.
Dr. Paudel confirmed his commitment to continuing policy reforms. He appreciated the IMF’s ongoing technical and financial support. He also assured that Nepal is focused on fulfilling its responsibilities under the ECF program.
Importance Of ECF For Nepal
Nepal joined the ECF arrangement to strengthen its financial system and improve transparency. The program has helped the country adopt better fiscal and monetary policies. It has also improved budget discipline and public finance management.
So far, Nepal has met several performance benchmarks. These include improving tax administration, managing public debt, and stabilizing inflation. The upcoming review will assess if these improvements are sustainable in the long term.
IMF’s Expectations And Nepal’s Progress
The IMF is looking at multiple indicators during this review. These include GDP growth, budget deficit, inflation rate, and foreign exchange reserves. The review will also evaluate institutional changes and the pace of reform implementation.
Ms. Jahan emphasized the importance of consistency in policy and transparency in data reporting. She stated that the IMF remains supportive of Nepal’s efforts. However, she highlighted the need for continued discipline and strong execution of reforms.
Nepal’s Response To Global Challenges
The global economy is facing uncertainty. Rising interest rates, inflation, and supply chain disruptions are affecting many developing countries. Nepal is not immune to these pressures. The ECF program plays a key role in helping Nepal cope with such external shocks.
Dr. Paudel acknowledged these challenges. He shared how NRB is working to stabilize the economy and ensure liquidity. He also mentioned that the central bank is coordinating with other government agencies to promote growth.
Structural Reforms And Fiscal Discipline
The IMF has praised Nepal for its steps toward institutional reforms. These include strengthening the banking system, improving regulatory frameworks, and promoting fiscal transparency. The mission supports Nepal’s efforts to digitize public finance and control leakages in government spending.
The government has also taken steps to enhance tax collection and reduce unnecessary expenditures. Such measures are important for creating a sustainable fiscal environment. The IMF team noted these efforts during the meeting.
Future Collaboration And Economic Outlook
Both sides agreed to maintain close collaboration. The IMF mission will continue its technical work and policy discussions in the coming days. The findings of the sixth review will shape future disbursements and policy advice.
Governor Paudel said that NRB remains committed to economic stability and reform. He added that the bank would continue to support inclusive growth and strengthen financial resilience. The governor also expressed interest in expanding cooperation with other development partners.
Conclusion: Building A Stable And Resilient Economy
The meeting between Governor Dr. Paudel and IMF Mission Chief Ms. Jahan marked a significant step in Nepal’s reform journey. The sixth review under the ECF is a critical milestone. It will determine Nepal’s eligibility for further IMF support and guide its future economic policies.
Nepal is currently balancing the need for growth with the need for stability. Programs like the ECF provide technical guidance and financial resources to support this balance. With continued cooperation and sound policies, Nepal aims to build a more resilient and transparent economy.
For more: NRB Governor Meets IMF
