Nepal, July 21 -- 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.

The seven-review programme has so far provided Nepal with $384.1 million in financing.

The facility was tied to a series of reform commitments, including measures to strengthen macroeconomic stability, rebuild foreign exchange reserves, safeguard financial sector stability, improve asset quality in the banking system and adopt risk-based financial supervision.

Since the programme began, Nepal's external sector has recovered markedly, with foreign exchange reserves reaching...