Kathmandu: Nepal’s economy is showing signs of recovery, with most indicators turning positive compared to the previous year, according to data released by Nepal Rastra Bank (NRB). The central bank’s “Current Economic and Financial Situation of Nepal” report highlights improvements across various sectors.
Overall inflation has decreased this year, while both foreign exchange reserves and government deposits have increased. Consumer price inflation stands at 2.77%, a significant drop from 4.40% recorded during the same period last year. Interestingly, the data indicates that inflation has risen more in rural areas than in urban centers.
Improving Economic Indicators:
- Government Deposits: Government accounts held a balance of NPR 360 billion in Baisakh (mid-April to mid-May).
- Balance of Payments (BOP): The BOP recorded a surplus of NPR 438.52 billion.
- Imports and Exports: Overall imports increased by 13%, while exports saw a notable surge of 73%.
- Remittances: Remittances recorded a monthly high of NPR 165 billion, contributing to an overall increase of 13.2%.
- Foreign Exchange Reserves: Total foreign exchange reserves stand at USD 18.40 billion.
- Revenue Mobilization: Revenue mobilization reached NPR 922.43 billion.
- Inflation: The inflation rate is maintained at 2.77%.
Foreign Exchange Reserves Cross NPR 2.5 Trillion Mark:
According to the NRB’s financial report for the first ten months of the current fiscal year (ending Baisakh, mid-May), the country’s foreign exchange reserves have surpassed NPR 2.5 trillion, reaching NPR 2,512.95 billion. This marks a 23.1% increase compared to mid-July of the previous fiscal year.
In US dollar terms, reserves amounted to USD 18.40 billion as of mid-May, representing a 20.5% increase from mid-July.
Of the total reserves, NPR 2,211.11 billion is held by the NRB, while NPR 301.83 billion is with banks and financial institutions. Indian currency accounts for 21.2% of the total foreign exchange reserves.
Based on the import figures for the first ten months of the fiscal year 2081/82, the foreign exchange reserves held by the banking sector are sufficient to cover 17.4 months of merchandise imports and 14.6 months of merchandise and services imports, the NRB stated.