Nepal received Rs 407.31 billion in remittance in the first three months of the current fiscal year, latest Nepal Rastra Bank data showed. 

“Remittance inflows increased 11.5 percent to Rs 407.31 billion in the review period compared to an increase of 25.8 percent in the same period of the previous year,” the central bank said in its Current Macroeconomic and Financial Situation of Nepal report, which is based on the data between mid-July and mid-October.

In US Dollar terms, remittance inflows reached 3.04 billion in the review period. It was $2.76 billion in the same period the previous fiscal year.  

Similarly, the number of Nepali workers, both institutional and individual, taking first-time approval for foreign employment stood at110,654 in the period, compared to 113,397 in the same period last year. A total of 59,939 Nepali migrant workers renewed their labour permits, compared to 49,297 in the same period last year.

Current account in surplus of Rs 111.87 billion

The current account of the Government of Nepal remained at a surplus of Rs 111.87 billion in the review period compared to a surplus of Rs 59.65 billion in the same period of the previous year. 

“In the review period, net capital transfer amounted to Rs 2 billion and foreign direct investment inflow (Equity only) remained at Rs 4.81 billion," according to the NRB. 

Similarly, the Balance of Payments (BOP) remained at a surplus of Rs 184.99 billion in the review period while it was at a surplus of Rs 101.66 billion in the same period of the previous year. 

The report stated that the gross foreign exchange reserves increased 9.4 percent to Rs 2,232.28 billion in mid-October 2024 from Rs 2,041.10 billion in mid-July 2024. 

Also, the year-on-year unit value export price index, based on customs data, increased 2.9 percent and the import price index decreased 3.5 percent.  The terms of trade index increased 6.5 percent in the review period. 

Likewise, the net services income remained at a deficit of Rs 23.29 billion in the review period compared to a deficit of Rs 29.39 billion in the same period of the previous year. 

Exports and imports decrease

In three months, the country's export and import decreased by 6.1 percent and 4.2 percent, respectively.

The exports decreased by 6.1 percent to Rs 38.38 billion compared to a decrease of 2.3 percent in the same period of the previous year. Exports to India, China and other countries decreased 5.3 percent, 24.8 percent and 6.6 percent respectively. 

While the exports of soybean oil, tea, particle board, shoes and sandals, oil cakes, among others increased in the period, that of zinc sheet, palm oil, cardamom, juice, and readymade garments, among others decreased, the report says.

Similarly, the imports decreased 4.2 percent to Rs 390.75 billion compared to an increase of 1.7 percent a year ago. 

Destination-wise, imports from India, China and other countries decreased 3.9 percent, 1.5 percent and 7.9 percent respectively. 

The total trade deficit decreased 4 percent to Rs 352.37 billion during the first three months of the current fiscal year. Such a deficit had increased 2.1 percent in the same period of the previous year. 

The export-import ratio decreased to 9.8 percent in the review period from 10 percent in the corresponding period of the previous year.

Consumer Price Inflation 4.82 percent in mid-October

(Source: Nepal Rastra Bank)

The consumer price stood by 4.82 percent in mid-October compared to 7.5 percent a year ago.

Food and beverage inflation stood at 7.18 percent whereas non-food and service inflation stood at 3.49 percent in the review period. 

Under the food and beverage category, the year-on-year consumer price index of vegetables increased by 25.15 percent, pulses and legumes 10 percent, cereal grains and their products 9.57 percent and ghee and oil 4.98 percent but the price index of meat and fish sub-category decreased 1.18 percent, according to the central bank.

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