October 4: Nepal’s Balance of Payment (BoP) surplus doubled during the first month of the current fiscal, compared to the same period last year.

According to the central bank, during the first month of FY 2015/16, the BoP surplus stood at Rs 4.95 billion. During the same period FY 2014/15, the figure was Rs 2.77 billion. 

This can be attributed to an increment in foreign assistance, growth in remittance and pension income and limited growth in imports.

According to NRB, during July/Aug this year, the central bank’s foreign currency has Rs 842.53 billion-- 2.3 percent more than what it was during the same period last year. The reserve is sufficient to finance the import of goods for 13.8 months and services for 11.7 month. 

Export down by 4 percent, Import up by 7 percent
In the first month of current FY, export was limited to Rs 6.46 billion—a decline of 3.9 percent. Last year, the decline compared to the previous year was 11.5 percent. Likewise, last year the total imports, which registered a growth of 12.5 percent, has increased by 7.2 percent. 

During the review period, Nepal’s trade deficit stood at Rs 53.12 billion—up 8.7 percent from last year. Last year, during the same period, the trade deficit was up by 16.6 percent.