Kathmandu, May 11: The Nepal Rastra Bank (NRB) has said that remittance inflows increased 10.0 percent to Rs.1191.31 billion in the review period compared to an increase of 17.2 percent in the same period of the previous year. In the US Dollar terms, remittance inflows increased 7.3 percent to 8.74 billion in the review period compared to an increase of 15.2 percent in the same period of the previous year.
According to the Current Macroeconomic and Financial Situation of Nepal (Based on Nine Months Data Ending Mid-April 2024/25) , net secondary income (net transfer) reached Rs.1301.94 billion in the review period compared to Rs.1174.54 billion in the same period of the previous year.
The number of Nepali workers, both institutional and individual, taking first-time approval for foreign employment stands at 358,222 and taking approval for renew entry stands at 249,652. In the previous year, such numbers were 327,842 and 211,226 respectively.
Current Account and Balance of Payments
The current account remained at a surplus of Rs. 210.22 billion in the review period compared to a surplus of Rs.179.83 billion in the same period of the previous year. In the US Dollar terms, the current account registered a surplus of 1.55 billion in the review period against a surplus of 1.35 billion in the same period last year.
In the review period, net capital transfer amounted to Rs.7.71 billion. In the same period of the previous year, such transfer amounted to Rs.4.78 billion. Similarly, in the review period, Rs.8.96 billion foreign direct investment (equity only) was received. In the same period of the previous year, foreign direct investment inflow (equity only) amounted to Rs.6.49 billion.
Balance of Payments (BOP) remained at a surplus of Rs.346.23 billion in the review period compared to a surplus of Rs.365.16 billion in the same period of the previous year. In the US Dollar terms, the BOP remained at a surplus of 2.55 billion in the review period compared to a surplus of 2.75 billion in the same period of the previous year.
Foreign Exchange Reserves
Gross foreign exchange reserves increased 18.9 percent to Rs.2426.84 billion in mid-April 2025 from Rs.2041.10 billion in mid-July 2024. In the US dollar terms, the gross foreign exchange reserves increased 15.4 percent to 17.63 billion in mid-April 2025 from 15.27 billion in mid-July 2024.
Of the total foreign exchange reserves, the reserves held by NRB increased 15.6 percent to Rs.2136.46 billion in mid-April 2025 from Rs.1848.55 billion in mid-July 2024. Reserves held by banks and financial institutions (except NRB) increased 50.8 percent to Rs.290.38 billion in mid-April 2025 from Rs.192.55 billion in mid-July 2024. The share of Indian currency in total reserves stood at 20.4 percent in mid-April 2025.
Foreign Exchange Adequacy Indicators
Based on the imports of nine months of 2024/25, the foreign exchange reserves of the banking sector is sufficient to cover the prospective merchandise imports of 17.1 months, and merchandise and services imports of 14.2 months. The ratio of reserves-to-GDP, reserves-to-imports and reserves-to-M2 stood at 39.7 percent, 118.7 percent and 32.8 percent respectively in mid-April 2025.
Such ratios were 35.8 percent, 108.6 percent and 29.3 percent respectively in mid-July 2024.
Merchandise Trade
During the nine months of 2024/25, merchandise exports increased 65.2 percent to Rs.188.20 billion against a decrease of 3.7 percent in the same period of the previous year. Destination- wise, exports to India, China and other countries increased 92.6 percent, 6.7 percent and 5.8 percent respectively. Exports of soyabean oil, polyster yarn and thread, tea, jute goods, and rosin, among others increased whereas exports of palm oil, zinc sheet, ginger, juice, and readymade garments, among others decreased in the review period.
During the nine months of 2024/25, merchandise imports increased 12.2 percent to Rs.1309.53 billion against a decline of 2.8 percent a year ago. Destination-wise, imports from India, China and other countries increased 7.7 percent, 14.4 percent and 24.9 percent respectively. Imports of crude soyabean oil, rice/paddy, transport equipment, vehicle and spare parts, edible oil, sponge iron, among others increased whereas imports of petroleum products, crude palm oil, aircraft spareparts, chemical fertilizer, and writing and printing paper among others decreased in the review period.
Total trade deficit increased 6.4 percent to Rs.1121.34 billion during the nine months of 2024/25. Such a deficit had decreased 2.8 percent in the corresponding period of the previous year. The export-import ratio increased to 14.4 percent in the review period from 9.8 percent in the corresponding period of the previous year.
During the nine months of 2024/25, merchandise imports from India against payment in convertible foreign currency amounted Rs.135.55 billion. Such amount was Rs.111.02 billion in the same period of the previous year.
Composition of Foreign Trade
As per the Broad Economic Categories (BEC), the intermediate and final consumption goods accounted for 33.5 percent and 65.3 percent of the total exports respectively, whereas the ratio of capital goods in total exports remained 1.2 percent in the review period. In the same period of the previous year, the ratio of intermediate, capital and final consumption goods remained 56.8 percent, 0.45 percent and 42.7 percent of total exports respectively.
On the imports side, the share of intermediate goods remained 51.7 percent, capital goods 8.9 percent and final consumption goods 39.4 percent in the review period. Such ratios were 49.2 percent, 9.1 percent and 41.7 percent respectively in the same period of the previous year.
Export-Import Price Index
The y-o-y unit value export price index, based on customs data, decreased 2.0 percent and the import price index also decreased 0.2 percent in the nine months of 2024/25. The terms of trade (ToT) index decreased 1.7 percent in the review period.
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