Balance of Payment deficit increases to Rs 14.79 billion

The overall Balance of Payment (BoP) recorded a deficit of Rs 14.79 billion -- in the nine months of the current fiscal year -- some Rs 3.49 billion more from Rs 11.30 billion in the eight months, according to the central bank.
"But the BoP was deficit at Rs 17.99 billion in the same period last fiscal year," stated the current macroeconomic situation based on the nine months of the current fiscal year that has attributed to the current account and service account deficit.
The current account registered a deficit of Rs 14.99 billion compared to a deficit of Rs 28.56 billion in the same period last year. But due to growth of trade deficit along with improvement in the service account attributed to a decline in the current account deficit, though the BoP position has not improved.
Similarly, the Free On Board (FOB)-based merchandise trade deficit increased by 2.1 per cent to Rs 231.85 billion aganist a growth of by 58.1 per cent in the same period last year. However, the service account deficit declined significantly by 33.1 per cent to Rs 8.22 billion compared to an increase by 36.5 per cent to Rs 12.30 billion in the same period last year, the report said.
The net transfer account registered a growth of 8.4 per cent to Rs 221.21 billion compared to that of a year ago. Under the transfers sub-group, grants decreased by 13.4 per cent to Rs 17.95 billion, while pension receipts rose by 6.7 per cent to Rs 21.63 billion. "Likewise, workers' remittances increased by 10.3 per cent to Rs 181.84 billion compared to its growth of 9.6 per cent in the same period last year.
Likewise, under the financial account foreign direct investment of Rs 5.60 billion was recorded compared to Rs 1.71 billion in the same period last year.
Total trade deficit increased by 2.2 per cent to Rs 240.08 billion against an increase of 56.5 per cent in the same period last year. Trade deficit with India rose by 28.5 per cent compared to a growth of 53.1 per cent in the same period last year, whereas trade deficit with other countries declined by 28.6 per cent compared to a growth of 60.6 per cent in the same period a year ago. "The improvement in exports coupled with deceleration in import contributed to an increase in the ratio of export to import to 16.7 per cent from the ratio of 16.2 per cent a year ago," it added.
According to the report, merchandise exports increased by 5.7 per cent to Rs 47.98 billion compared to a decline by 10.9 per cent to Rs 45.39 billion in the same period last year, whereas on a monthly basis, exports increased by 4.4 per cent in March-April against a month ago.
"Exports to India increased by 8.1 per cent in contrast to a drop of 7.1 per cent in the same period last year but exports to other countries increased by a nominal 1.2 per cent against to a plunge of 17.3 per cent in the same period last year," it said, attributing the increase in the exports to India mainly to the increase in exports of zinc sheet, jute goods, thread, plastic utensils and juice.
Similarly, merchandise imports also increased by 2.8 per cent to Rs 288.06 billion against a growth of 39.4 per cent to Rs 280.26 billion in the same period last year. "Imports from India grew by 24.6 per cent compared to a growth of 36.5 per cent in the same period last year, whereas imports from other countries declined by 24.8 per cent in contrast to a growth of 43.2 per cent in the same period last year," the central bank stated.
The import of petroleum product, MS billet, cold rolled sheet in coil, chemical fertiliser and other machinery and parts increased from India whereas import of gold, readymade garments, steel rod and sheet, other machinery and parts and betelnuts declined from other countries.


Inflation at 10.6pc
KATHMANDU: The y-o-y inflation as measured by the consumer price index (2005/06=100) increased to 10.6 per cent in mid-April from 14.3 per cent in the same period last fiscal year. The index of food and beverage group increased by 17.3 per cent and the index of non-food and services group increased by 5.2 per cent against 16.1 per cent and 6.3 per cent increase in the same period last fiscal year.