BoP Breaks the Record since 1974

Country’s Balance of Payment (BoP) went up breaking the record since 1974/75. Nepal Rastra Bank (NRB)’s macro economic report of last four months of current fiscal year says that remittance and spending of foreign tourist have contributed for this. The BoP has reached Rs 46.31 billion in the last four months of current fiscal year till mid-November.

Here are the major points that the report of NRB has:

1) Trade deficit is still high—widened by 12.1 percent compared to the same period of last year. It has reached Rs 111.80  billion.

2) Remittance went up by 34.2 percent and has reached Rs 103.2 billion in the four months of current fiscal year.

3)  Imports grew 11.8 percent to Rs 135.49 billion compared to imports worth Rs 121.17 billion recorded during the same period in the last fiscal year.

Nepal’s BoP is continuously rising since the beginning of this fiscal year. Some of the experts here in Nepal claim that this is more like a miracle than the real improvement of situation. I think that this is not any miracle but a tremendous contribution of remittance and spending of foreign tourist—which means the NRB’s report is relied on the facts. As per one of the internal document of NRB (a senior official shared with me in his cabin) shows that the tourist flow even from Eastern Europe is increasing though the financial situation of that region is not in good condition.