BOP deficit 247 billion 30 million

The country has incurred a balance of payments deficit of Rs. 247 Billion 30 million. According to the report on the current economic and financial situation of the country released by the Nepal Rastra Bank based on the data for the seven months of the Fiscal Year 2078/2079, the BOP was in surplus of Rs. 97.36 billion in the corresponding period of the previous year. In US dollar terms, the BOP had a deficit of Rs. 2.7 billion in the review period compared to a surplus of Rs. 817.6 million in the corresponding period of the previous year.

The current account has a deficit of Rs. 413.86 billion during the review period. In the corresponding period of the previous year, the current account was Rs. The deficit was Rs. 104.39 billion. The current account deficit stood at Rs. 3.47 billion in the review period compared to a deficit of Rs. 892.1 million in the corresponding period of the previous year. According to the central bank, Rs. 13.08 billion has been received from the International Monetary Fund for extended loan facility during the review period. During the period, capital transfers declined by 19.4 percent to Rs. 6.31 billion, while net foreign investment achieved an encouraging 80.6 percent. On a year-on-year basis, consumer price index-based inflation stood at 5.97 percent, while imports increased by 42.8 percent and exports by 88.3 percent. Remittance inflows declined by 4.9 percent to the Nepalese rupee and 5.8 percent to the US dollar.

Total foreign exchange reserves stood at Rs. 9.75 billion. The federal government's expenditure is Rs. 591.2 billion and revenue mobilization is Rs. 613.41 billion, the bank said.

Broad money increased by 2.8 percent, such money increased by 13.5 percent on an annual basis, deposit mobilization of banks and financial institutions increased by 3.6 percent and credit to private sector increased by 12.3 percent. On an annual basis, the growth rate of deposits was 14.6 percent and the growth rate of credit to the private sector was 25.3 percent.

In the seven months of FY 2078/79, total merchandise exports increased by 88.3 percent and reached Rs. 131.66 billion. Such exports had increased by 7.6 percent in the corresponding period of the previous year. On a destination basis, exports to India and other countries increased by 113.0 percent and 27.7 percent, respectively, while exports to China declined by 12.4 percent. On commodity basis, exports of commodities including palm oil, soybean oil, pina, yarn (polyester and others), juice increased while exports of cardamom, tea, herbs, wire, copper wire declined.

The total merchandise trade deficit increased by 38.4 percent to Rs. 1015.81 billion in the first seven months of FY 2011/12. Such deficit had decreased by 0.7 percent in the corresponding period of the previous year. Export-import ratio reached 11.5 percent during the review period. Such ratio was 8.7 percent in the corresponding period of the previous year.