The IMF Country Reports Series covers economic and financial developments and trends in member countries. Each report, prepared by a staff team after discussions with officials of the country, is published at the option of the member.
The achievements in the third year of the Poverty Reduction Strategy Paper implementation have been satisfactory, given the difficult development environment resulting from the violent conflict and continued political instability. Nepal's macrolevel indicators remain stable, despite growing pressure on the government budget. Nepal should continue with bolder reforms and development measures. Nepal also needs to begin planning eventual reconstruction and rehabilitation of those affected by the conflict, to be able to quickly respond to the situation when peace is established.