Nepal's balance of payment sees Rs 150 billion negative

This undated image shows the building of Nepal Rastra Bank in Kathmandu. Photo courtesy: NRB

KATHMANDU: Nepal’s balance of payment has witnessed Rs 150 billion negative in the first four months of the current fiscal year 2078/79.

According to the current macroeconomic and financial situation report of the country unveiled by the Nepal Rastra Bank on Thursday, the balance of payment which was a surplus of Rs 110.65 billion in the review period of the previous fiscal year has become negative in the current fiscal year.

Balance of payment is the difference between the inflow and outflow of money. As per the report made public, the country has witnessed loss of Rs 223.19 billion in the first four months of the current fiscal year.

In the corresponding period of last fiscal year, the balance of payment was positive with Rs 19 billion 10 million in the review period last year.

With the fall of the balance of payment, the reserve of foreign currency has also dropped. Total foreign currency reserve was Rs 1399 billion 30 million in the first four months of the current fiscal year. It was reduced to Rs 1244 billion 850 million with a fall of 11%.

The trade deficit has also increased to Rs 568.17 billion with a rise of 56.8% in the first four months of the fiscal year.

In the review period last year, the deficit had dropped by 12.5%. Likewise, remittance flow has also decreased by 7.5% in the period this year.

In the first four months of the fiscal year, the federal government has spent Rs 287.54 billion and generated revenue amounting to Rs 334.31 billion, according to the report unveiled.

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