Kathmandu: Nepal received Rs 407.31 billion in remittances during the first three months of the current fiscal year, reflecting an 11.5% increase compared to the same period last year, according to the Nepal Rastra Bank (NRB). The central bank’s Current Macroeconomic and Financial Situation of Nepal report, based on data up to mid-October, showed that remittance inflows in US Dollar terms reached $3.04 billion, up from $2.76 billion in the corresponding period of the previous year.
The report stated that 110,654 Nepali workers received first-time approval for foreign employment in the review period, while 59,939 workers sought renewed entry approval. This marks a slight decline from the same period last year when 113,397 workers obtained first-time approvals for overseas jobs.
The country’s current account surplus increased significantly to Rs 111.87 billion, compared to Rs 59.65 billion in the same period last year. Meanwhile, the Balance of Payments (BOP) surplus rose to Rs 184.99 billion, up from Rs 101.66 billion during the corresponding period of the previous year. Additionally, net capital transfer amounted to Rs 2 billion, while foreign direct investment (FDI) inflows, equity only, totaled Rs 4.81 billion.
Gross foreign exchange reserves climbed 9.4% to Rs 2,232.28 billion by mid-October 2024, up from Rs 2,041.10 billion in mid-July 2024.
In terms of trade performance, the country’s exports decreased by 6.1% to Rs 38.38 billion, while imports fell by 4.2% to Rs 390.75 billion during the first quarter. This resulted in a reduction in the total trade deficit by 4% to Rs 352.37 billion. The export-import ratio decreased to 9.8% from 10% in the same period last year.
Exports to India, China, and other countries dropped by 5.3%, 24.8%, and 6.6%, respectively. Products such as soybean oil, tea, and shoes saw an increase in exports, while items like zinc sheets, palm oil, and garments recorded a decline. Imports also declined, with goods from India, China, and other countries falling by 3.9%, 1.5%, and 7.9%, respectively.
Consumer prices increased by 4.82% in mid-October, a decrease from the 7.5% recorded a year earlier. Food and beverage inflation was 7.18%, driven by rising prices of vegetables (25.15%), pulses (10%), and cereal grains (9.57%). Non-food and service inflation stood at 3.49%.
The NRB report highlights positive trends in remittances and fiscal indicators, despite challenges in trade and inflation dynamics.