The balance of payments (BoP) remained at a surplus of Rs 14.43 billion in the first three months of the current fiscal year despite a drop in remittance.
According to the Macroeconomic Status – of mid-July to mid-October – report published by the central bank today, the BoP remained in surplus in the first quarter of the current fiscal year compared to a deficit of Rs 35.42 billion in the same period of the last fiscal year.
The central bank report also revealed that remittance inflows decreased by 4.9 per cent to Rs 230.24 billion, which could have hit the BoP situation but due to surging exports by 14.4 per cent to Rs 27.17 billion the BoP remained surplus.
Though, the export witnessed an increament, the sustainability is under doubt as the largets export product palm oil is not the domestic product and is reexported by importing from Malaysia and Indonesia.
“Mainly exports of palm oil, cardamom, medicine (ayurvedic), jute goods, yarn (polyester and others), among others, increased while exports of zinc sheet, juice, readymade garments, woollen carpets, wires, among others, decreased in the review period,” the report reads, adding that the merchandise imports slumped by 10.3 per cent to Rs 334.95 billion – in first three months of current fiscal year – against a rise of 43.6 per cent in the same period of the last fiscal year. “However, the current account registered a deficit of Rs 27.18 billion in the review period compared to Rs 81.74 billion in the same period of the last fiscal year.”
But the trade deficit fell by 12 per cent year-on-year to Rs 307.78 billion in the first quarter largely due to a sharp drop in the import of electrical equipment, readymade garments, petroleum products and gold.
The export-import ratio increased to 8.1 per cent in the review period from 6.4 per cent in the corresponding period of the last fiscal year, the report adds.
Imports from China increased by 11.6 per cent while imports from India and other countries decreased by 12.2 per cent and 19.1 per cent, respectively, the report reads, adding that the share of electrical equipment in total imports fell to 1.9 per cent from 4.5 per cent. “Nepal imported electrical equipment worth Rs 16.81 billion in the first three months of the last fiscal year but in the first three months of the current fiscal year, electrical equipment imports dropped by 61.90 per cent to Rs 6.40 billion.”
Likewise, readymade garment imports dropped by half to Rs 10 billion from Rs 19.86 billion of the last fiscal year’s first quarter. “Gold imports plunged by 99 per cent to Rs 597 million due to increasing price of the precious yellow metal lately.”
According to the report, fruit imports dropped to Rs 2.99 billion in the first three months of the current fiscal year compared to Rs 3.76 billion in the same period last fiscal year. “Vegetable imports also dropped to Rs 3.82 billion from Rs 4.40 billion.”
Exports to India increased 35.8 percent while exports to China and other countries decreased 19.9 and 11.7 percent respectively. “Large cardamom export jumped to Rs 1.25 billion in the first three months of this fiscal year from Rs 767 million in same period last fiscal year.”
Nepal imported crude palm oil worth Rs 5.05 billion, which is not produced in Nepal and exported processed oil valued at Rs 5.75 billion.
According to the Macroeconomic Status – of mid-July to mid-October – report published by the central bank today, the BoP remained in surplus in the first quarter of the current fiscal year compared to a deficit of Rs 35.42 billion in the same period of the last fiscal year.
The central bank report also revealed that remittance inflows decreased by 4.9 per cent to Rs 230.24 billion, which could have hit the BoP situation but due to surging exports by 14.4 per cent to Rs 27.17 billion the BoP remained surplus.
Though, the export witnessed an increament, the sustainability is under doubt as the largets export product palm oil is not the domestic product and is reexported by importing from Malaysia and Indonesia.
“Mainly exports of palm oil, cardamom, medicine (ayurvedic), jute goods, yarn (polyester and others), among others, increased while exports of zinc sheet, juice, readymade garments, woollen carpets, wires, among others, decreased in the review period,” the report reads, adding that the merchandise imports slumped by 10.3 per cent to Rs 334.95 billion – in first three months of current fiscal year – against a rise of 43.6 per cent in the same period of the last fiscal year. “However, the current account registered a deficit of Rs 27.18 billion in the review period compared to Rs 81.74 billion in the same period of the last fiscal year.”
But the trade deficit fell by 12 per cent year-on-year to Rs 307.78 billion in the first quarter largely due to a sharp drop in the import of electrical equipment, readymade garments, petroleum products and gold.
The export-import ratio increased to 8.1 per cent in the review period from 6.4 per cent in the corresponding period of the last fiscal year, the report adds.
Imports from China increased by 11.6 per cent while imports from India and other countries decreased by 12.2 per cent and 19.1 per cent, respectively, the report reads, adding that the share of electrical equipment in total imports fell to 1.9 per cent from 4.5 per cent. “Nepal imported electrical equipment worth Rs 16.81 billion in the first three months of the last fiscal year but in the first three months of the current fiscal year, electrical equipment imports dropped by 61.90 per cent to Rs 6.40 billion.”
Likewise, readymade garment imports dropped by half to Rs 10 billion from Rs 19.86 billion of the last fiscal year’s first quarter. “Gold imports plunged by 99 per cent to Rs 597 million due to increasing price of the precious yellow metal lately.”
According to the report, fruit imports dropped to Rs 2.99 billion in the first three months of the current fiscal year compared to Rs 3.76 billion in the same period last fiscal year. “Vegetable imports also dropped to Rs 3.82 billion from Rs 4.40 billion.”
Exports to India increased 35.8 percent while exports to China and other countries decreased 19.9 and 11.7 percent respectively. “Large cardamom export jumped to Rs 1.25 billion in the first three months of this fiscal year from Rs 767 million in same period last fiscal year.”
Nepal imported crude palm oil worth Rs 5.05 billion, which is not produced in Nepal and exported processed oil valued at Rs 5.75 billion.
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