Nepal: 2008 Article IV Consultation: Staff Report; Staff Supplement; Public Information Notice on the Executive Board Discussion; and Statement by the Executive Director for Nepal
IMF Staff Country Reports, June 11, 2008
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- Nepal: 2008 Article IV Consultation: Staff Report; Staff Supplement; Public Information Notice on the Executive Board Discussion; and Statement by the Executive Director for Nepal
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Bibliographic details
- Published: June 11, 2008
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781451830118.002
Overview and Main Findings
- Limited progress has been made in addressing Nepal’s structural weaknesses in tax administration and public financial management.
- Macroeconomic performance under the recent Poverty Reduction and Growth Facility (PRGF)-supported program has been stable.
- The outlook for 2007–08 remains stable.
- Progress on structural reforms has been held back by fragile political circumstances.
- Public enterprises, and the Nepal Oil Corporation in particular, pursue quasi-fiscal activities involving significant subsidies.
- Nepal’s growth prospects depend most importantly on a peaceful political transition.
Macroeconomic Performance and Outlook
- Macroeconomic performance: stable under the PRGF-supported program.
- Outlook: stable for 2007–08.
Structural Issues and Public Finances
- Tax administration: limited progress in addressing weaknesses.
- Public financial management: limited progress in addressing weaknesses.
- Public enterprises: engage in quasi-fiscal activities with significant subsidies.
- Nepal Oil Corporation: specifically identified as pursuing quasi-fiscal activities involving significant subsidies.
Political Context and Growth Prospects
- Fragile political circumstances have held back progress on structural reforms.
- Growth prospects: depend most importantly on a peaceful political transition.
Classification and Subject Tags
- Subject: Banking, Budget planning and preparation, External debt, Inflation, International trade, Prices, Public debt, Public financial management (PFM), Trade balance
- Keywords: Budget planning and preparation, CR, credit growth, debt, GDP, Global, government, government finances, growth prospect, Inflation, ISCR, Nepal, Nepalese authorities, net present value, PRGF program, real GDP, Trade balance