April 17: The y-o-y consumer price inflation of Nepal stood at 4.2 percent in mid-March 2019 compared to 6.0 percent a year ago, according to a report on the current macroeconomic situation of Nepal published by Nepal Rastra Bank.

The report based on eight months’ data of 2018/19 states that the salary and wage rate index increased 10.0 percent in mid- March 2019 from 7.8 percent a year ago. In the review period, the salary index and the wage rate index increased 6.6 percent and 11.0 percent respectively.

In eight months of 2018/19, merchandise exports increased 14.6 percent to Rs 61.22 billion compared to an increase of 10.8 percent a year ago. Destination-wise, exports to India and other countries increased 26.3 percent and 1.3 percent respectively whereas exports to China decreased 27.6 percent, according to the report.

Mainly exports of polyester yarn, zinc sheet, jute goods, woolen carpet, pulses, among others, increased whereas exports of cardamom, shoes and sandles, tanned skin, readymade garment, rosin, among others, decreased in the review period.

Likewise, in the eight months of 2018/19, merchandise imports increased 23.8 percent to Rs 949.11 billion compared to an increase of 22.0 percent in the same period of the previous year.

Destination- wise, imports from India, China and other countries increased 22.0 percent, 37.8 percent and 20.8 percent respectively. Commodity-wise, imports of petroleum products, readymade garment, MS billet, aircraft spareparts, electrical goods, among others, increased whereas imports of cement, telecommunication equipment and parts, crude soybean oil, medical equipment and tools, betelnut, among others, decreased in the review period.

The country’s total trade deficit further widened 24.5 percent to Rs 887.88 billion in eight months of 2018/19. The export-import ratio declined to 6.5 percent in the review period from 7.0 percent in the corresponding period of the previous year.

Remittances increased 23.4 percent to Rs 582.19 billion in the review period compared to an increase of 4.9 percent in the same period of the previous year.

Likewise, the number of Nepalese workers (institutional and individual-new and legalized) migrated for foreign employment decreased 38.3 percent in the review period. It had decreased 5.4 percent in the same period of the previous year.

The report states that Balance of Payments (BOP) remained at a deficit of Rs.58.99 billion in the review period compared to a deficit of Rs 24.73 billion in the same period of the previous year.

In the review period, capital transfer and foreign direct investment (FDI) in Nepal amounted to Rs 11.56 billion and Rs 6.66 billion respectively. In the same period of the previous year, capital transfer and FDI amounted to Rs 11.94 billion and Rs 14.24 billion respectively.

In eight months of 2018/19, fiscal position of the Government remained at a surplus of Rs 8.90 billion, which was at a deficit of Rs 53.63 billion in the corresponding period of the previous year.

In the review period, total expenditure of the federal government (based on banking transactions) stood at Rs 519.58 billion. The total government expenditure was Rs 506.55 billion in the corresponding period of the previous year.

In the review period, revenue collection based on banking transactions (including the amount to be transferred to provincial and local governments) increased 21.1 percent to Rs 520.79 billion. Total government revenue had increased 21.4 percent to Rs 430.06 billion in the corresponding period of the previous year.