Tuesday, 2nd September 2014

BoP records surplus of Rs 77.19 billion in first half of FY 2013/14


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The overall Balance of Payments (BoP) recorded a surplus of Rs 77.19 billion during the first six months of the fiscal year 2013/14 compared to a surplus of Rs 7.77 billion during the same period of the previous fiscal year.

According to the latest Current Macroeconomic Situation of Nepal published by Nepal Rastra Bank (NRB), the current account posted a surplus of Rs 55.02 billion in the review period compared to a surplus of Rs 4.41 billion in the same period of the previous year.

The surplus in the current account was primarily due to an upsurge in service credit as well as high rate of growth of grants and workers' remittances in the review period, said the central bank.

The Free on Board (FoB)-based merchandise trade deficit increased by 24.7 percent to Rs 277.12 billion during the six months of 2013/14 while the same deficit had gone up by 27.9 percent in the same period of the previous year.

The net service income posted a surplus of Rs 9.49 billion in the review period in contrast to a deficit of Rs 1.91 billion in the same period of the previous year.

Net transfers registered a growth of 37.9 percent to Rs 308.47 billion in the review period compared to a growth of 18.2 percent in the same period of the previous year.

Under the transfers, workers’ remittances surged by 34.4 percent to Rs 265.62 billion compared to an increase of 21.8 percent in the same period of the previous year.

On a monthly basis, remittance inflows increased by 5.1 percent in December/January compared to the value of the previous month of this fiscal year. Similarly, under the financial account, foreign direct investment of Rs 1.28 billion was recorded in the review period.