BoP deficit increases to Rs 4.43 billion

* Remittances up by 11.5pc to Rs 118.45 billion
* Trade deficit Rs 147.99 billion
* Exports up by 5.9 per cent to Rs 32.63 billion
* Imports declined by 1.6 per cent to Rs 185.83 billion
* Inflation increases to 11.3 per cent

The overall Balance of Payment (BoP) has registered a deficit of Rs 4.43 billion during the six months of the current fiscal year from five months' deficit of Rs 3.35 billion, according to the central bank.
The BoP was Rs 16.64 billion deficit in the same period last year, said the Nepal Rastra Bank (NRB) macroeconomic report for the current six months. "The current account also registered a deficit of Rs 3.53 billion compared to a deficit of Rs 25.07 billion in the same period last year," said the central bank attributing the decline in trade deficit along with improvement in service account to such a decline in the current account deficit.
The Freight on Board (FoB)-based merchandise trade deficit dropped by 3.3 per cent to Rs 147.99 billion against such deficit that had grown by 60.7 per cent in the same period last year.
"The service account deficit declined significantly by 28.5 per cent to Rs 5.26 billion compared to an increased by 6.8 per cent to Rs 7.35 billion deficit in the same period last year."
However, the net transfer account registered a growth of 12.8 per cent to Rs 146.71 billion compared to that of a year ago. "Under the transfers sub-group, grants increased by 29.2 per cent to Rs 15.2 billion, while pension receipts rose marginally by two per cent to Rs 13.92 billion, whereas workers' remittances increased by 11.5 per cent to Rs 118.45 billion compared to its growth of 12.6 per cent in the same period last year.
Likewise, under the financial account foreign direct investment (FDI) of Rs 4.46 billion was recorded compared to the level of Rs 966 million in the same period a year ago.
Similarly, imports registered six times higher to the exports. "Merchandise exports increased by 5.9 per cent to Rs 32.63 billion during the six months of the fiscal year, whereas merchandise imports declined by 1.6 per cent to Rs 185.83 billion,' it said, adding that exports to India increased by 9.7 per cent in contrast to a drop of 4.1 per cent in the same period last year.Exports to other countries decreased by 0.5 per cent in contrast to a plunge of 20.9 per cent in the same period last year.

Inflation looks up
KATHMANDU: Propelled by non-food and service groups, the year-on-year (y-o-y) inflation as measured by the consumer price index (2005-06=100) increased to 11.3 per cent in mid-January from 10.7 per cent in the same period last year. "The index of food and beverage group increased by 17.6 per cent and non-food and services group increased by 6.2 per cent against the increase by 18.3 per cent and 4.6 per cent respectively in the same period of last year.