Nepal to raise IMF quota by 50%, expanding its voting power and global share

Kathmandu: Nepal has decided to increase its quota at the International Monetary Fund (IMF), effectively boosting its financial stake and voting power within the global lender.

The Cabinet meeting held on Monday approved a proposal to raise Nepal’s IMF quota by 50 percent—from the current 159.9 million Special Drawing Rights (SDR) to 235.35 million SDR. This means Nepal will add 78.45 million SDR to its existing quota.

In the IMF structure, quota represents a member country’s shareholding, which determines its financial contribution, voting rights, and borrowing limits. The quota is measured in SDR, a reserve asset valued at about US$ 1.36 per unit.

With the increase, Nepal’s total shareholding in the IMF will amount to approximately US$ 321.1 million (Rs 44.77 billion). The country will need to contribute an additional US$ 107.3 million (around Rs 15 billion) to the Fund.

Of this, the government will pay 25 percent—Rs 3.75 billion—from the current fiscal year’s budget, while the remaining 75 percent will be covered through promissory notes issued in the name of Nepal Rastra Bank.

Currently, Nepal holds 159.9 million SDR in quota, which gives it 3,021 votes—equivalent to a 0.93 percent share in IMF quota and 0.06 percent of total voting power. After the increase, Nepal will secure 2,353 more votes, strengthening its representation.

The IMF reviews quotas every five years, assessing members’ positions in the global economy.