Nepal’s economy showing early signs of recovery: IMF

KATHMANDU, SEPTEMBER 24: An International Monetary Fund (IMF) staff team, led by Ms. Sarwat Jahan, visited Kathmandu from September 11-22, 2024, to discuss recent macroeconomic developments and the implementation of the Extended Credit Facility (ECF) program.

At the end of the visit, Ms. Jahan stated that Nepal’s economy is showing early signs of recovery, with positive import growth, improving tax collections, and increased public investment. "Credit growth is also recovering, while inflation has decelerated to around 3.6% by mid-July, aided by favorable commodity prices and weak demand. International reserves continue to rise, supported by strong remittances, recovering tourism, and subdued imports."

Similarly, Ms. Jahan emphasized the importance of accelerating reforms to ensure sustainable economic growth, including enhancing public investment, improving domestic revenue mobilization, and addressing vulnerabilities in the banking sector. She  even welcomed recent amendments to the Anti-Money Laundering Act and highlighted the need for governance improvements through the amendment of the Nepal Rastra Bank (NRB) Act and increasing public enterprise transparency.

The IMF team held discussions with Deputy Prime Minister and Finance Minister Bishnu Prasad Paudel, NRB Governor Maha Prasad Adhikari, National Planning Commission Vice-Chairman Dr. Shiva Raj Adhikari, and other officials, as well as private sector representatives. They expressed gratitude for the warm hospitality and constructive discussions during their visit.