Press Release No. 23/276

IMF Staff Concludes Visit to Nepal

July 27, 2023

Kathmandu, Nepal: An International Monetary Fund (IMF) staff team, led by Mr. Tidiane Kinda, conducted a staff visit to Kathmandu during July 20-26, 2023, to discuss recent macroeconomic developments and the implementation of the Fund-supported program .

At the conclusion of the visit, Mr. Kinda issued the following statement:

“Following an economic slowdown last year, growth is projected to rebound in FY2023/24, inflation is expected to recede, and the external position will continue to strengthen. Cautious and data-driven monetary policy has set an appropriate stance to maintain price and external stability. Continued vigilance on banks’ asset quality and stepping up supervisory efforts remain key to preserving financial stability. Prudent execution of the FY2023/24 budget is crucial to secure fiscal sustainability. Implementing measures envisaged in the FY2023/24 budget would improve the efficiency of capital expenditure.

“The authorities’ ongoing efforts in meeting key commitments under the Fund-supported program, with the support of IMF’s technical assistance, are welcome. Performance under the program will be formally assessed in the context of the third review of the Extended Credit Facility, which is expected to be undertaken later this year.

“The IMF team is grateful to the Nepali authorities for their hospitality and for constructive discussions. The IMF team held meetings with the Honorable Minister of Finance Dr. Prakash Sharan Mahat, the Nepal Rastra Bank Governor Mr. Maha Prasad Adhikari, the National Planning Commission Vice-Chairman Dr. Min Bahadur Shrestha, and other senior government and central bank officials. The IMF team also met with representatives from the private sector and development partners.”