July 28: An International Monetary Fund (IMF) staff team, led by Tidiane Kinda, conducted a visit to Kathmandu during July 20-26 to discuss recent macroeconomic developments and the implementation of the IMF-supported programmes.

Issuing a statement towards the end of the visit, the team leader Kinda said that the country’s economic growth rate is expected to improve in the current fiscal year (FY 2023/24).

“Following an economic slowdown last year, growth is projected to rebound in FY 2023/24, 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,” reads the statement

He also mentioned that 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, added Kinda.

Similarly, he has pointed out that prudent implementation of the current fiscal year's budget as an important part of securing financial sustainability. He said that the implementation of the measures adopted through the current FY’s budget will improve the efficiency of capital expenditure.

The team said that the monetary policy introduced by Nepal Rastra Bank for the current financial year is aimed at external sector stability and price increase control.

The ongoing efforts of the authorities to fulfill the major commitments under the IMF-supported programmes with the technical assistance of the International Monetary Fund are welcome, said Kinda.

He also mentioned that the 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 expressed its gratefulness to the authorities in Nepal for their hospitality and constructive discussions.

“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 Maha Prasad Adhikari, the National Planning Commission Vice-Chairman 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,” added the statement.