BoP surplus augments by over Rs 200 billion

KATHMANDU, DECEMBER 13 : The inflow of funds into Nepal has significantly increased compared to the outflow. According to Nepal Rastra Bank, the balance of payments (BoP) surplus in the first four months of the current fiscal year stood at Rs 205.83 billion, up from Rs 150.24 billion during the same period last year. In USD terms, the BoP surplus increased to USD 1.53 billion from USD 1.13 billion year-on-year.

Similarly, the current account surplus reached Rs 143.42 billion, compared to Rs 97.10 billion in the same period last year. In USD terms, the surplus rose to USD 1.06 billion from USD 0.73 billion. Net capital transfers amounted to Rs 2.47 billion, up from Rs 1.59 billion, while foreign direct investment (FDI) inflows increased to Rs 5.76 billion from Rs 3.65 billion in the same period last year.

Exports of goods in the first four months grew by 4.2% to Rs 52.67 billion, reversing a 7.7% decline in the same period last year. Exports to India increased by 8.4%, while exports to China and other countries declined by 18.3% and 3%, respectively. Key export items such as soybean oil, tea, polyester yarn, particle boards, and pineapples saw growth, while exports of palm oil, zinc sheets, ready-made garments, juice, and ginger decreased.

The imports rose marginally by 0.2% to Rs 513.39 billion, compared to a 3.8% decline last year. Imports from India and China grew by 0.9% and 2.9%, respectively, while imports from other countries fell by 5%. Notable increases were seen in imports of transportation equipment, vehicles and spare parts, edible oil, sponge iron, garlic, and telecommunication equipment, while imports of petroleum products, gold, crude palm oil, aircraft spare parts, and electrical equipment declined.

The exports from major customs offices, including Bhairahawa, Biratnagar, Birgunj, Dry Port, Kailali, Krishnanagar, Mechi, Nepalgunj, and Rasuwa, declined. On the other hand, imports decreased across most major customs offices except Bhairahawa, Dry Port, Jaleshwor, Kailali, Kanchanpur, Rasuwa, and Tatopani.

The total trade deficit slightly decreased by 0.3% to Rs 460.72 billion, compared to a 3.3% reduction in the same period last year. The export-to-import ratio improved to 10.3% from 9.9% last year. During this period, goods worth Rs 57.24 billion were imported from India using convertible foreign currency, up from Rs 53.84 billion in the same period last year