Himal Press 
KATHMANDU: The International Monetary Fund (IMF) on Tuesday approved a disbursement of $41.3 million for Nepal.
Issuing a statement, IMF said it allowed Nepali authorities to withdraw the equivalent of SDR 31.4 million (about $41.3 million) following the conclusion of its fourth review under the four-year Extended Credit Facility.
This brings total disbursements for Nepal under the EFC to SDR 188.3 million (about $247.7 million).
SDR, or special drawing right, is a currency instrument created by the IMF for use in its internal accounting purposes. The value of the SDR is calculated from a weighted basket of major currencies like the US dollar, the euro, the Japanese yen, the Chinese Yen and the British pound.
The IMF’s Executive Board approved the ECF arrangement for Nepal on January 12, 2022.
“Nepal has made good progress with the implementation of the program, which has helped mitigate the impact of the pandemic and global shocks on economic activity, protect vulnerable groups, and preserve macroeconomic and financial stability. The program is also helping to catalyze additional financing from Nepal’s development partners,” IMF said in the statement.
It, however, said that the Nepali economy continues to face challenges as growth, projected to stay at around 3% in 2023/24, remains below potential in the context of subdued domestic demand and post‑pandemic balance sheet repairs. “Economic activity, however, is expected to pick up with growth reaching 4.9% in 2024/25, supported by stronger domestic demand,” it added.
