First Business News Portal in English from Nepal
KATHMANDU: In 11 months of the fiscal year 2021/22, import of goods and services increased to Rs 185 billion 840 million with a whopping rise by 53.3 percent.
Likewise, total import of goods has increased to 1,763 billion 220 million, a rise by 27.5 percent. Total trade deficit has increased to Rs 1577 billion 390 million with a rise by 25 percent.
Meanwhile, remittance inflow has gradually improved. Due to significant rise in imports, the status of balance of payment will be worsening.
In the first 11 months of the fiscal year 2021/22, current accounts has witnessed loss of Rs 595 billion 730 million. In the reporting period last year, the loss was Rs 298 billion 110 million.
Increasing loss in current accounts indicates higher demand than domestic production in the economy and also shows rising difference between financial source and demand.
The balance of payment was reported to be Rs 269 billion 810 million in the 11 months of the fiscal year 2021/22.
In the corresponding period last year, the balance of payment was Rs 15 billion 150 million.
With the rise in the negative trend of balance of payment, the foreign currency reserve decreased by around Rs 2.3 billion US Dollars in the 11 months of the FY 2021/22. It has now been reported to be 9.45 billion US Dollars.
The reserve is adequate for the import of goods and services for 6-7 months. However, there were further challenges to keep inflation due to the devaluation of Nepali currency against the US Dollar lately.
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