Asia and Pacific > Nepal

You are looking at 1 - 10 of 18 items for :

  • Type: Journal Issue x
  • Public financial management (PFM) x
Clear All Modify Search
Mr. Fabien Gonguet, Mr. Claude P Wendling, Ozlem Aydin Sakrak, and Bryn Battersby
Public financial management (PFM) consists of all the government’s institutional arrangements in place to facilitate the implementation of fiscal policies. In response to the growing urgency to fight climate change, “green PFM” aims at adapting existing PFM practices to support climate-sensitive policies. With the cross-cutting nature of climate change and wider environmental concerns, green PFM can be a key enabler of an integrated government strategy to combat climate change. This note outlines a framework for green PFM, emphasizing the need for an approach combining various entry points within, across, and beyond the budget cycle. This includes components such as fiscal transparency and external oversight, and coordination with state-owned enterprises and subnational governments. The note also identifies principles for effective implementation of a green PFM strategy, among which the need for a strong stewardship located within the ministry of finance is paramount.
Mr. Richard I Allen and Mr. Eivind Tandberg
Public investment is likely to be an important component of any postcrisis recovery program. As countries work to ensure a smart, green, fair recovery, investing in modern, resilient, and efficient infrastructure assets will be key. This How to Note discusses how countries should manage public investments to recover from the COVID-19 pandemic and similar crises. It provides countries with guidance on making efficient use of public investment to support economic recovery on three different capacity levels: basic, medium, and advanced.
International Monetary Fund. Asia and Pacific Dept
This Selected Issues paper examines the degree to which inflation co-moves between India and a panel of countries in Asia. The paper shows that the considerable co-movement in headline inflation rates between India and Nepal is driven almost exclusively by food-inflation co-movement. By contrast, the role for inflation spillovers emanating from India in driving non-food inflation in Nepal appears limited. The implication is that Nepal should rely on domestic monetary policy rather than stable inflation in India to achieve stable domestic inflation. The main takeaway from the results is that food inflation co-movement between India and other countries is higher in cases where the co-movement in rainfall deviations from seasonal norms is highest. Since core inflation co-movement is weak, idiosyncratic domestic factors such as economic slack, exchange-rate movements, and differing degrees of passthrough from food- and energy-price shocks play an important role. This finding is critically important for monetary policy, especially since domestic policy is primarily effective only in controlling core inflation. Thus, domestic monetary policy needs to be calibrated to domestic inflationary pressures—Nepal cannot necessarily rely on stable inflation in India to achieve stable domestic inflation.
International Monetary Fund. Asia and Pacific Dept
This 2017 Article IV Consultation highlights the rebound of Nepal’s economy following a slowdown caused by the 2015 earthquakes and trade disruptions at the southern border. The growth of real GDP at market prices slowed to 0.6 percent in 2015/16 (mid-July 2015 to mid-July 2016). Due to trade disruption, shortages of fuel and other essential goods drove up inflation to 12 percent (year over year) in January 2016, but it eased subsequently to 3.2 percent in January 2017, mainly because of lower food prices. Growth is projected to reach 5.5 percent in 2016/17, and inflation is expected to undershoot the central bank’s mid-2017 target of 7.5 percent.
International Monetary Fund. Asia and Pacific Dept
This 2015 Article IV Consultation highlights that the earthquakes in April and May and protests and trade disruptions following the promulgation of a new constitution in September have exacerbated the macroeconomic policy challenges facing the Nepalese economy. Real GDP growth is estimated to have decelerated to 3.4 percent in 2014/15 (mid-July 2014 to mid-July 2015) from 5.5 percent in 2013/14. Growth is expected to gradually rebound to about 5.5 percent by 2016/17, as economic activity recovers from the earthquake and reconstruction gains momentum. Inflation is projected to rise to about 8.5 percent over the next 12 months. The medium-term outlook depends importantly on the authorities’ reform efforts.
International Monetary Fund. Asia and Pacific Dept
This paper discusses Nepal’s Request for Disbursement Under the Rapid Credit Facility (RCF). Before the April 2015 earthquake, Nepal’s macroeconomic performance was broadly favorable but the government’s weak budget implementation capacity held back growth and propped up the external position. The authorities’ main challenge has been to boost their capacity to plan, prioritize, and implement capital spending. The authorities are requesting financial assistance under the IMF’s RCF to address the urgent balance of payments and fiscal needs associated with the rehabilitation and reconstruction efforts. The IMF staff supports the authorities’ request for a disbursement under the RCF in the amount of SDR 35.65 million.
International Monetary Fund
Assessment Letters or Statements may be prepared for member countries with Fund-supported programs; receiving Fund emergency assistance; with staff-monitored programs; or surveillance-only cases. They are typically produced for use by the country with multilateral or bilateral donors or creditors, in particular the World Bank and other International Financial Institutions.
International Monetary Fund
Limited progress has been made in addressing Nepal’s structural weaknesses in tax administration and public financial management. Macroeconomic performance under the recent Poverty Reduction and Growth Facility (PRGF)-supported program has been stable. The outlook for 2007–08 remains stable. Although the macroeconomic performance has been stable, progress on structural reforms has been held back by the fragile political circumstances. Public enterprises and the Nepal Oil Corporation, in particular, pursue quasi-fiscal activities involving significant subsidies. Nepal’s growth prospects depend most importantly on a peaceful political transition.
International Monetary Fund
The staff report for the Fifth Review Under the Three-Year Arrangement Under the Poverty Reduction and Growth Facility (PGRF) highlights Nepal’s economic outcomes and macroeconomic policies. Financing needs and logistics of the peace process pose continuing challenges. Macroeconomic stability remains intact, but the speed of structural reform implementation has been slow. Macroeconomic policies remain anchored and the authorities are aware of the need for further structural reforms. Financial sector reforms can help improve intermediation and financial stability.