KATHMANDU: The Nepal Rastra Bank (NRB), Nepal’s central bank, has stated that the country’s balance of payment has remained at a deficit of NRs. 76.13 billion.
Publishing a “Current Macroeconomic and Financial Situation of Nepal” with based on three month’s data ending Mid-October, 2021/22 today, the NRB has also presented dismal situation on remittance inflow. The NRB said that the remittances inflow has decreased 7.6 percent in NPR terms and 7.7 percent in USD terms.
Remittance inflows has decreased 7.6 percent to Rs.239.32 billion in the review period against an increase of 12.7 percent in the same period of the previous year. In the US Dollar terms, remittance inflows decreased 7.7 percent to 2.02 billion in the review period against an increase of 7.6 percent in the same period of the previous year.
Number of Nepali workers (institutional and individual-new and legalized) taking approval for foreign employment increased significantly to 66,316 in the review period. It had decreased 96.8 percent in the same period of the previous year. The number of Nepali workers (Renew entry) taking approval for foreign employment increased significantly to 34,823 in the review period. It had decreased 78.6 percent in the same period of the previous year.
Likewise, CPI-based inflation remained 4.24 percent on year-on-year basis in the third month of 2021/22 compared to
3.79 percent a year ago. Food and beverage inflation stood at 3.63 percent whereas non-food and service inflation stood at 4.72 percent in the review month, the bank said.
The price of ghee and oil; meat and fish; pulses and legumes; tobacco products and non-alcoholic drinks sub-categories rose 31.68 percent, 11.93 percent, 10.71 percent, 10.12 percent and 9.63 respectively
Imports has increased 63.7 percent and exports increased 109.5 percent within three months. During the three months of 2021/22, merchandise exports increased 109.5 percent to Rs.65.05 billion compared to an increase of 14.3 percent in the same period of the previous year.
Destination-wise, exports to India, China and other countries increased 147.1 percent, 19.4 percent, and 27.2 percent respectively. Exports of soyabean oil, palm oil, oil cakes, polyster yarn & thread, jute goods, among others, increased whereas exports of tea, cardamom, zinc sheet, wire, medicine (ayurvedic), among others, decreased in the review period.
The NRB said, “Destination-wise, imports from India, China and other countries increased 48.4 percent, 55.2 percent, and 124.2 percent respectively. Imports of petroleum products, transport equipment, vehicle and parts, crude soyabean oil, crude palm oil, gold, among others, increased whereas imports of cement, chemical fertilizer, pulses, molasses sugar, tobacco, among others, decreased in the review period.”
Total trade deficit has increased 58.3 percent to Rs.413.47 billion during the three months of 2021/22. Such a deficit had contracted 15.1 percent in the corresponding period of the previous year, the bank said.
Gross foreign exchange reserves stood at USD 10.98 billion, while Federal Government spending amounted to Rs.234.52 billion and revenue collection Rs.255.04 billion.
The current account remained at a deficit of Rs.151.70 billion in the review period against a surplus of Rs.33.38 billion in the same period of the previous year. In the US Dollar terms, the current account registered a deficit of 1.28 billion in the review period against a surplus of 279.9 million in the same period last year.
Gross foreign exchange reserves has also decreased 5.7 percent to Rs.1319.32 billion in mid-October 2021 from Rs.1399.02 billion in mid-July 2021. In the US Dollar terms, the gross foreign exchange reserves has decreased 6.5 percent to 10.98 billion in mid-October 2021 from 11.75 billion in mid-July 2021.
