The International Monetary Fund has concluded a technical assistance scoping mission in Nepal to lay the groundwork for a Governance and Corruption Diagnostic (GCD), at the request of the Nepali authorities. The GCD is intended to identify macroeconomically critical governance weaknesses and corruption vulnerabilities and to support an action plan with specific, sequenced recommendations and reform priorities. The hybrid mission, led by Jonathan Pampolina and conducted in Kathmandu from 12 to 21 January 2026, engaged stakeholders on governance and corruption vulnerabilities in core state functions referenced in the IMF 2018 Enhanced Governance Framework. For Nepal, the diagnostic will cover fiscal governance focused on public financial management and revenue administration, financial sector oversight, rule of law, and anti-money laundering and countering the financing of terrorism (AML/CFT), alongside an assessment of the effectiveness of anti-corruption legal and institutional frameworks. A main GCD mission will be conducted in the coming months, culminating in a diagnostic report analysing the nature and severity of corruption in Nepal, identifying governance weaknesses and vulnerabilities, and proposing a targeted, sequenced and prioritised reform plan to mitigate them.

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