Kathmandu — The International Monetary Fund (IMF) has extended the duration of Nepal’s Extended Credit Facility (ECF) program by an additional two months. The program will now remain in effect until July 11.

The IMF Executive Board approved the extension following a request from the Government of Nepal. According to a statement issued by the IMF, the extension was granted to allow additional time for completing the remaining review process and disbursing the final tranche of the financial assistance.

Under the program, Nepal was approved for concessional loan support for a total period of 38 months. The facility was originally approved on January 12, 2022. Nepal is eligible to receive approximately SDR 282.42 million under the arrangement, equivalent to around USD 380 million to 390 million.

The IMF assistance is not provided as a lump sum. Instead, Nepal receives the funds in phases upon meeting various economic and structural reform conditions. These include reforms in the tax system, banking sector, public expenditure management, and maintaining fiscal discipline.

The ECF program has already undergone multiple extensions. Initially set to continue until January 2026, the deadline was later extended to May 2026 and has now been pushed further to July 11.

Although Nepal has received concessional financial support under the IMF program, such facilities are tied to reform commitments. The latest extension is understood to have been granted to provide the government with additional time to implement the agreed economic reform measures.