Nepal’s Balance of Payment sees Rs 150 billion negative

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

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 at surplus of Rs 110 billion 650 million in the review period of the previous fiscal year has become negative in the current fiscal year.

Balance of payment is the difference between inflow and outflow of money. As per the report made public, the country has witnessed loss of Rs 223 billion 190 million in the first four months of 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 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 the fall of 11 percent.

The trade deficit has also increased to Rs 568 billion 170 million with the rise by 56.8 percent in the first four months of the fiscal year.

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

In the first four months of the fiscal year, the federal government has spent Rs 287 billion 540 million and generated revenue amounting to Rs 334 billion 310 million, according to the report unveiled.