Nepal

Nepal strengthened tax foundations by establishing revenue strategy and tax policy unit, improving transparency, analysis, and coordination, enabling evidence-based policymaking and positioning authorities for sustainable, fair future revenue gains.

In FY26, GPFP support focused on turning earlier diagnostics and report into operational capacity. It was complementary to the analyses provided, with IMF staff working side-by-side with officials on their practical use. During headquarters-led missions, staff guided officials through full tax-expenditure costing exercises using Nepalese data, training them to do their own analysis. During headquarters-led missions, staff guided officials through full tax-expenditure costing exercises using Nepalese data, training them to do their own analysis. Together they reviewed assumptions, helped troubleshoot data gaps, and discussed how results could inform policy debate. IMF staff worked directly with the new tax policy unit to clarify its mandate, define a realistic work program, and identify priority products tied to the budget cycle and beyond. The authorities showed strong responsiveness to CD and ownership of reforms. Senior officials integrated IMF CD recommendations into government planning documents, requested follow-up missions and additional training, and reused IMF tools beyond their original purpose, including reform simulations.