26th-03-2012

According to Nepal Rastra Bank (NRB)’s data, Nepal has imported merchandise worth Rs 254.95 billion in the first seven months of the current fiscal year, which is an increment by 16.9 per cent as compared to the same period last fiscal year.

“Similarly, merchandise exports rose by 13.4 per cent to Rs 42.59 billion during mid-February as compared to the same period of fiscal year 2010-11,” NRB’s macroeconomic situation for the seventh month said, adding that total trade deficit went up by 17.6 per cent to Rs 212.36 billion. “But trade deficit had declined by 1.4 per cent in the same period of the last fiscal year.”

However, the increased remittance inflow and service accounts coupled with capital account surplus has pushed the Balance of Payment to a record surplus of Rs 75.09 billion as compared to a deficit of Rs 13.04 billion in the same period of the last fiscal year, the central bank data revealed, though it has not elaborated on the swelled miscellaneous accounts.

The current account posted a surplus of Rs 34.67 billion in mid-February as compared to a deficit of Rs 6.67 billion in the same period last year due to the growth in remittance inflow and improvement in service accounts. Net service account witnessed a surplus of Rs 10.05 billion in contrast to a deficit of Rs 6 billion in the same period of last fiscal year.

“Service receipts rose by 35.1 per cent while service expenditures declined by 15.1 per cent,” it added. “Under services, tourism income rose by 28.4 per cent against a decline by 21.1 per cent in the same period of last year. However, total travel expenses saw a decline by 27.2 per cent, including educational expenses by 24.9 per cent.”

But net transfer account registered a growth of 30.2 per cent to Rs 222.12 billion as compared to a year ago. “Under transfers, pension receipts declined by 1.2 per cent to Rs 15.44 billion, but remittance inflow increased by 35.5 per cent to Rs 188.19 billion as compared to a growth of 11.7 per cent in the same period of the last fiscal,” it added. If the current rate of remittance inflow continues, it will match the total budget outlay of Rs 384 billion.

Prices start looking up

KATHMANDU: The year-on-year inflation as measured by the consumer price index increased by seven per cent in mid-February as compared to 10.2 per cent in the same period of last fiscal year. But inflation had cooled down to 6.8 per cent in mid-January. The index of food and beverage group and non-food and services group was up by 4.1 per cent and 9.6 per cent respectively. These indices had increased by 16.6 per cent and five per cent respectively in the same period of the last fiscal year. The rising price of petroleum prices coupled with transportation cost is likely to push the price further up. “Under the items of the food and beverage group, the price index of milk products and egg sub-group increased by the highest rate, whereas under the non-food and services group, the price index of transport increased by double to 18.5 per cent against an increase of 9.2 per cent in the same period of the previous year.

Himalayan;

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