Nepal's Balance of Payments Records Surplus of Rs 147.11 Billion

In a positive economic development, Nepal's balance of payments (BOP) has maintained a surplus of Rs.147.11 billion, according to a report by the Nepal Rastra Bank based on data ending in mid-November. This marks a substantial increase compared to the Rs.20.03 billion surplus in the same period the previous year.

In terms of US Dollars, the BOP surplus reached 1.11 billion in the review period, slightly lower than the 149.6 million surplus in the corresponding fiscal year. The current account also showed improvement, registering a surplus of Rs.96.38 billion compared to a deficit of Rs.37.79 billion in the previous year. In US Dollar terms, the current account surplus reached 725.1 million, contrasting with the 296.1 million deficit in the same period last year.

The report highlighted 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, a significant increase from the Rs.429.2 million in the previous year. Merchandise imports decreased by 3.8% to Rs.512.50 billion, with notable changes in import categories and sources.

Exports and imports from various customs points exhibited mixed trends, with some showing increases and others experiencing decreases. The total trade deficit decreased 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 against payment in convertible foreign currency amounted to Rs.53.84 billion during the review period, reflecting an increase from Rs.42.69 billion in the same period the previous year. Overall, the report indicates positive strides in Nepal's economic indicators, with the BOP surplus signaling improved financial stability.