KATHMANDU: Nepal’s balance of payments (BoP) surplus has reached Rs 491.44 billion by the end of Jestha (mid-June) in the current fiscal year, according to the latest report by Nepal Rastra Bank.
This is a notable increase from the same period last fiscal year, when the BoP surplus stood at Rs 425.67 billion.
The improvement in the BoP position is attributed primarily to a significant rise in exports and remittance inflows, despite only a modest increase in imports.
Over the first 11 months of the fiscal year, imports rose by 13 percent, while exports surged by 77.8 percent. In addition, remittance inflows grew by 15.5 percent.
In U.S. dollar terms, the BoP surplus reached $3.62 billion, up from $3.2 billion during the same period in the previous year.
The current account also recorded a strong surplus of Rs 307.31 billion by the end of Jestha, compared to a Rs 200 billion surplus during the same period last fiscal year. In dollar terms, the current account surplus increased from $1.51 billion to $2.26 billion.
Net capital transfers reached Rs 8.96 billion in the review period, up from Rs 5.46 billion in the same period last fiscal year.
Nepal also witnessed growth in foreign direct investment (FDI). The country received Rs 11.09 billion in FDI (equity only) during the review period, compared to Rs 8.24 billion in the same period a year ago.
The central bank has credited improved export performance, stable remittance inflows, and increased FDI as major contributors to the improved external sector indicators.
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