The coronavirus pandemic has wreaked havoc on Nepal’s economy.
Even though there are minuscule coronavirus cases in Nepal, the COVID-19 pandemic has wreaked havoc on the nation’s economy.
Due to the ongoing crisis, the foreign remittances to Nepal have dropped considerably, tourist influx collapsed and local economic activities have taken a worst-hit.
This, in turn, is substantially deteriorating the nation’s GDP growth, the balance of payments and fiscal positions.
In need of the hour, the International Monetary Fund (IMF) has come forward to lend financial support to Nepal during the COVID-19 crisis.
The IMF has pledged to contribute USD 214 million to the Nepali Government to fill the urgent balance of payments and fiscal needs incited by the contagion.
The government has increased health spending to provide additional incentives and insurance to all COVID-19 medics, procure essential medical supplies, and set up quarantine centers and temporary hospitals.
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It also initiated steps to support those who lost employment, ensure adequate liquidity in the financial system and provide daily food rations.
At this juncture, the IMF financial support is set to provide some relief to the Nepali Government.
So far, Nepal has reported 99 coronavirus positive cases and zero death cases. Currently, 77 patients are undergoing treatment, while 22 have already recovered.