Nepal cenbank governor sees no need for IMF loan as tourism earnings rise

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KATHMANDU : Nepal sees no need to approach the International Monetary Fund (IMF) for a fresh loan as pressure on foreign exchange reserves is easing after a pick up in tourism, its central bank governor said on Monday. 'At present, our focus is on man ageingdemand to reduce pressure on foreign (exchange)

KATHMANDU : Nepal sees no need to approach the International Monetary Fund for a fresh loan as pressure on foreign exchange reserves is easing after a pick up in tourism, its central bank governor said on Monday.

Remittances from overseas workers, meanwhile, rose 1.5 per cent to $7.5 billion during the same period, government data showed. Many economies in South Asia including Sri Lanka, Pakistan and Bangladesh have sought IMF assistance to reduce risks of defaults on external payments following a jump in the prices of imported fuel and grain, while export earnings have been much more muted.

Nepal’s external debt has more than doubled to $7.77 billion in 2022 from $3.8 billion in 2012, according to government estimates. Nepal’s imports grew more than 24 per cent percent to $15 billion in a year ending mid-July, from $12 billion in the previous year, while exports surged 41 per cent to $1.56 billion from $1.1 billion, latest data from the Department of Custom showed.

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