Country receives more than Rs 407 billion in remittances in three months

KATHMANDU: The country received Rs 407.31 billion in remittances in the first three months of the current fiscal year, the central bank said today.

“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,” Nepal Rastra Bank (NRB) stated in the Current Macroeconomic and Financial Situation of Nepal Report, which is based on three months data ending Mid-October.

In US Dollar terms, remittance inflows reached 3.04 billion in the review period which was 2.76 billion in the same period of the previous year, according to the NRB.

The central bank said that the number of Nepali workers taking first-time approval for foreign employment stands at 110,654 and taking approval for renewed entry stands at 59,939 in the past three months. In the review period of the previous year, such number of workers taking time-time approval for foreign jobs was 113,397.

Current account surplus at Rs 111.87 billion

Likewise, the current account of the government 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 2232.28 billion in mid-October 2024 from Rs 2041.10 billion in mid-July 2024.

It said that 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 in the past three months. The terms of trade index increased 6.5 percent in the review period.

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

During the three months, the country’s exports and imports 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. Exports of soyabean oil, tea, particle board, shoes and sandals, oil cakes, among others increased whereas exports of zinc sheet, palm oil, cardamom, juice, and readymade garments, among others decreased in the review period.

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.

The consumer price increased 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 per cent in the review period.

Under the food and beverage category, the year-on-year price index of vegetables increased 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.