In a positive economic development, a report from the Nepal Rastra Bank reveals that Nepal’s balance of payments (BOP) has maintained a surplus of Rs.147.11 billion, marking a significant increase compared to the Rs.20.03 billion surplus recorded in the same period the previous year, based on data ending in mid-November.
Expressed in US Dollars, the BOP surplus for the review period reached 1.11 billion, slightly lower than the 149.6 million surplus in the corresponding fiscal year. The current account has also displayed improvement, registering a surplus of Rs.96.38 billion in contrast to a deficit of Rs.37.79 billion in the previous year. In US Dollar terms, the current account surplus reached 725.1 million, a notable contrast to the 296.1 million deficit in the same period last year.
The report underscores a 46.6% decrease in capital transfer to Rs.1.59 billion, while net foreign direct investment (FDI) remained positive at Rs.3.64 billion, marking a significant increase from the Rs.429.2 million recorded in the previous year. Merchandise imports witnessed a 3.8% decrease, totaling Rs.512.50 billion, with notable shifts in import categories and sources.
Trade patterns at various customs points exhibited mixed trends, with some experiencing increases while others faced decreases. The total trade deficit reduced by 3.3% to Rs.461.94 billion during the review period, contributing to an improved export-import ratio of 9.9%, down from 10.3% in the corresponding period last year.
Merchandise imports from India, paid in convertible foreign currency, amounted to Rs.53.84 billion during the review period, showing an increase from Rs.42.69 billion in the same period the previous year. Overall, the report signals positive strides in Nepal’s economic indicators, with the BOP surplus indicating enhanced financial stability.