Remittances hit Rs 407.31bn in Q1

The country has received Rs 407.31bn in remittances in the first three months of the current fiscal year (2024-25).

“Remittance inflows increased 11.5 percent to Rs 407.31bn in the review period compared to an increase of 25.8 percent in the corresponding 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 $3.04bn in the review period which was $2.76bn in the same period of the previous year, according to the NRB.

The central bank said 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, the number of workers taking time-time approval for foreign jobs was 113,397.

A surplus of Rs 111.87bn

The current account of the government remained at a surplus of Rs 111.87bn in the review period compared to a surplus of Rs 59.65bn in the same period of the previous year. “In the review period, net capital transfer amounted to Rs 2bn and foreign direct investment inflow (equity only) remained at Rs 4.81bn,” according to the NRB.

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

The report stated that the gross foreign exchange reserves increased 9.4 percent to Rs 2,232.28bn in mid-Oct 2024 from Rs 2,041.1bn 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 by 6.5 percent in the review period.

The net services income remained at a deficit of Rs 23.29bn in the review period compared to a deficit of Rs 29.39bn in the corresponding period of the previous year.

Trade goes down

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 per cent to Rs 38.38bn compared to a decrease of 2.3 percent in the same period of the previous year. Exports to India, China and other countries decreased by 5.3 percent, 24.8 percent and 6.6 percent, respectively whereas the export of soybean oil, tea, particle board, shoes, sandals and oil cakes increased even as exports of zinc sheet, palm oil, cardamom, juice and readymade garments decreased in the review period.

The imports decreased 4.2 percent to Rs 390.75bn 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 four percent to Rs 352.37bn during the first three months of the current fiscal year against a 2.1 percent increase in the corresponding period of the previous fiscal. 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 percent in the review period.

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