The International Monetary Fund said its capacity development team completed the main mission for a Governance and Corruption Diagnostic in Nepal after visiting Kathmandu and Birgunj from April 20 to May 6 at the government’s request. The diagnostic is intended to identify macro-critical governance weaknesses in institutions, policies and practices and to develop concrete, sequenced and prioritized reforms to address corruption risks affecting economic performance, fiscal sustainability, the business and investment climate, and public trust. The work builds on a January 12 to 21 scoping mission and Nepal’s structural reform agenda under the current Extended Credit Facility. An IMF team drawn from the Fiscal Affairs, Monetary and Capital Markets, and Legal departments assessed vulnerabilities across public financial management, including budget, public investment management, state-owned enterprises and procurement, as well as tax and customs administration, financial sector oversight, anti-money laundering, rule of law, and the effectiveness of anti-corruption and oversight institutions. The mission also consulted civil society organizations, academics, think tanks, private sector representatives, business associations, and international development partners. Collaboration will continue after the main mission. A draft report with findings and a sequenced reform plan is expected to be shared with the Nepali authorities in the coming months for input, and the final report will be published upon the authorities’ consent.

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