Q&A: Nepal’s economy is on firmer footing, IMF committed to continued engagement

IMF officials discuss the gains from the Extended Credit Facility, the risks posed by the Middle East conflict, banking sector reforms, the FATF grey list and the Fund’s future engagement with Nepal.

In the wake of the Covid-19 pandemic, Nepal sought an Extended Credit Facility (ECF) from the International Monetary Fund as the country's current account and balance of payments slipped into deep deficits and foreign exchange reserves fell sharply.