Balance of Payment deficit stands at Rs 11.67 billion

The deceleration in growth of trade deficit along with improvement in the service account has brought down the current account deficit pulling the overall Balance of Payment down to Rs 11.67 billion, according to the central bank.
"The overall BoP recorded a deficit of Rs 11.67 billion during the ten months of the current fiscal year compared to a deficit of Rs 14.03 billion in the same period last year," said the central bank's report today.
The current account deficit has come down by over a half to Rs 10.47 billion compared to a deficit of Rs 25.44 billion in the same period last year. "Still, the overall BoP position has not improved as expected," Nepal Rastra Bank said.
The Free-On-Board (FoB)-based merchandise trade deficit increased by 4.4 per cent to Rs 258.99 billion against a deficit that had grown by 50.2 per cent in the same period last year. The service account deficit declined considerably by 42.3 per cent to Rs 7.85 billion against its deficit that had increased by 69.3 per cent to Rs 13.6 billion in the same period last year.
Similarly, net transfer account registered a growth of 9.2 per cent to Rs 250.50 billion compared to that of a year ago. Under the transfers sub-group, grants decreased by 5.6 per cent to Rs 21.0 billion, while pension receipts rose by 3.7 per cent to Rs 23.44 billion. The workers' remittances increased by 10.8 per cent to Rs 206.66 billion compared to its growth of 10.2 per cent in the same period last year.
Likewise, under the financial account, foreign direct investment of Rs 5.74 billion was recorded compared to the level of Rs 2.41 billion in the same period a year ago, it added.
The Merchandise exports rose by 5.5 per cent to Rs 52.67 billion against a declined by 11.7 per cent to Rs 49.91 billion in the same period last year. Similarly, exports to India went up by 8.1 per cent in contrast to a drop of 7.3 per cent in the same period last year. Exports to other countries increased by 0.8 per cent against a decline of 18.9 per cent in the same period last year.
Similarly, merchandise imports increased by 4.8 per cent to Rs 321.0 billion, whereas imports from India soared by 23.9 percent compared to a growth of 34.7 per cent in the same period last year. Imports from other countries plummeted by 20.5 per cent against a growth of 33 per cent in the same period last year.
Total trade deficit went up by 4.6 per cent to Rs 268.14 billion, whereas trade deficit with India rose by 27.6 per cent compared to a growth of 50.4 per cent in the same period last year.On the contrary, trade deficit with other countries declined by 23.7 per cent compared to a growth of 47.3 per cent in the same period a year ago, it added.

Inflation at 9.5 per cent
KATHMANDU: The year-on-year inflation as measured by the consumer price index increased to 9.5 per cent in mid-May against 8.8 per cent in the same period last year. Of the items under food and beverage group, price index of vegetables sub-groups increased by the highest rate of 48.3 per cent compared to the decrease of 3.8 per cent in the same period last year.

Balance of Payment deficit continues
Mid-December -- Rs 3.35 billion
Mid-January -- Rs 4.43
Mid-February -- Rs 12.57 billion
Mid-March -- Rs 14.79 billion
mid-April -- Rs 11.67 billion
(Source: Central Bank)