IMF: Inflation can be tamed in Nepal

KATHMANDU, June 28 (Xinhua) -- A visiting mission of the International Monetary Fund (IMF) said that the inflation in Nepalis inching towards double digits but "still" under control and manageable, THT Online reported on Saturday. "Nepal has a disciplined budget policy for the last couple of years," ... ...Brain J Aitken, deputy division chief of Asia and Pacific Department. He added that as long as Nepali currency is continually pegged to Indian currency, inflation would not create any trouble. IMF has predicted a 8 percent of inflation in Nepal, reported the leading website. The government has adjusted prices recently and it is one of the major reasons behind the rising inflation, he said. He also said that despite the political turmoil, the macro-economic outlook in Nepal had remained stable. Led by the service sector and agriculture, Nepal's output growth for this year could rise to 4.75 percent, according to the IMF. "In the coming year, it could rise to 5.5 percent," Aitken said. Meanwhile, a visiting delegation of Asian Development Bank (ADB), led by director Sebastian Paust, met senior leaders of the Communist Party of Nepal-Maoist here on Friday. Maoist Chairman Prachanda and his deputy Baburam Bhattarai held discussions with six board members of the ADB team that arrived here on Monday. Nepal is a founder-member of ADB and, till December 31, 2007, cumulative lending to Nepal by the ADB had reached 2.3 billion U.

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