Kathmandu-The International Monetary Fund (IMF) has decided to provide Nepal with assistance worth approximately $42.9 million under the Extended Credit Facility (ECF) program.

According to a press statement issued by the IMF, the assistance was approved after Nepal achieved significant progress in structural reform areas.

The IMF stated improvements in the modernization of the monetary operations system, enhanced supervision of the financial sector, completion of a loan portfolio review, improvements in the financial framework and transparency, strengthening of the anti-money laundering structure, legal reforms, and increased accountability of public institutions. These measures have also contributed to better governance.

According to details made public by the IMF Executive Board following its meeting on June 5, Nepal has made notable progress in economic reform under the program.

The IMF has projected Nepal’s economic growth at 3 percent for the current fiscal year 2025-26. The relatively low growth forecast is attributed to disruptions caused by political protests, reduced agricultural production, sluggish private investment, and the impact of conflict in the Middle East.

With the latest disbursement, Nepal’s total assistance received under the program has reached approximately $384.1 million.

The IMF Executive Board had earlier extended Nepal’s Extended Credit Facility (ECF) program until July 11, 2026.

The 38-month ECF program for Nepal was approved on January 12, 2022. Under the program, Nepal received access equivalent to 180 percent of its quota, amounting to $282.42 million.

Through the IMF’s ECF program, Nepal has committed to maintaining financial stability, strengthening foreign exchange reserves, improving public financial management, and advancing economic reform programs.