Nepal | August 12, 2020

Remittance income grew by 26.3 per cent to Rs 53.27 billion

Remittance income grew by 26.3 per cent to Rs 53.27 billion

Himalayan News Service
Share Now:
Source: Nepal Rastra Bank

Source: Nepal Rastra Bank

Kathmandu, October 2

The country’s current account surplus grew by a whopping 553 per cent in the first month of the current fiscal year, as merchandise import growth rate fell and remittance income jumped.

The current account surplus stood at Rs 8.15 billion in the one-month period between mid-July and mid-August as against Rs 1.25 billion in the same period last fiscal year, shows the latest Macroeconomic Report of Nepal Rastra Bank.

Current account shows how much the country has earned from or spent on exports and imports of goods and services, and provides information on inward and outward fund transfers, including remittance. A positive or surplus current account shows that inflow of funds from these activities is greater than outflow.

The country’s current account was in surplus in the first month of the current fiscal year because of sharp rise in money sent by Nepalis working abroad.

Remittance income grew by 26.3 per cent to Rs 53.27 billion in the first month of this fiscal. A huge growth in remittance income was seen this fiscal largely due to contraction in the base of remittance income in the similar period last fiscal.

In the last fiscal, remittance income had grown moderately because of rapid inflow of funds from informal channels.

Also, moderate hike in import growth rate helped the country to book a current account surplus.
In the one-month period, merchandise imports grew by 7.2 per cent to Rs 62.58 billion, as against import growth rate of 12.5 per cent recorded in the same period last fiscal year.

“The growth of imports remained low mainly due to the decrease in the price of petroleum products and also fall in the imports of silver, video television and parts, telecommunication equipment and parts, among others,” says the NRB report.

Despite lower import growth rate, the country’s trade deficit widened by 8.7 per cent to Rs 56.12 billion in the first month, as merchandise exports fell.

Exports dropped by 3.9 per cent to Rs 6.46 billion largely due to fall in demand for zinc sheet, GI pipe, wire and textiles in India, tanned skin and rudraksha in China and pulses, tea and handicrafts in other countries, shows the NRB report.

Source: Nepal Rastra Bank

Source: Nepal Rastra Bank

Also, income from tourism sector fell by 9.9 per cent to Rs 2.42 billion in the one-month period, while expenses of Nepalis who travelled abroad went up by 24 per cent to Rs 5.49 billion in the same period. Expenses of Nepalis studying abroad also rose by 24.4 per cent in the first month of the current fiscal year to Rs 1.84 billion.

Hike in these expenses were, however, offset by a 24.5 per cent rise in foreign pension income to Rs 3.75 billion and 97.5 per cent increment in foreign grants to Rs 4.45 billion.

Also, foreign direct investment surged to Rs 44.3 million in the first month of the current fiscal year, as against Rs two million recorded in the same period last fiscal.

Because of flow of these funds the country’s balance of payments stood at a surplus of Rs 4.95 billion in the one-month period.

BoP surplus indicates that flow of money into the country from all the countries in the world, on average, is greater than outflow.

A version of this article appears in print on October 03, 2015 of The Himalayan Times.

Follow The Himalayan Times on Twitter and Facebook

Recommended Stories:

More from The Himalayan Times:

Four of a family dead as house collapses in Doti

DOTI: Four members of a family were killed after their house collapsed in Adharsha Rural Municipality-1 of Doti District on Monday night. The deceased have been identified as Loke Luhar, his wife Bishna (35), son Paras (11), daughter Siru (7) and Jenisha (4), informed Deputy Superintendent of Read More...

849 passengers arrive on last day of fourth phase of repatriation

KATHMANDU, AUGUST 10 A total of 849 Nepalis were evacuated today via five flights. According to Tribhuvan International Airport (TIA), Nepal Airlines Corporation (NAC) evacuated 151 passengers and Himalaya Airlines repatriated 149 passengers from Doha in Qatar. Himalaya Airlines also brought h Read More...

Lebanese government resigns after Beirut blast, public anger

BEIRUT: Lebanon’s prime minister stepped down from his job Monday in the wake of the catastrophic explosion in Beirut that has triggered public outrage, saying he has come to the conclusion that corruption in the country is “bigger than the state.” The move risks opening the way to dragged- Read More...

Ramechhap farmers perform puja for rain

Ramechhap, August 10 At a time when continuous rainfall and attendant disasters have been causing loss of life and property in most parts of the country, farmers of Manthali, Ramechhap, are offering puja to god for rainfall so that they can cultivate paddy. As rainfall hasn’t occurred here t Read More...

Coronavirus infections stabilise in Australia's Victoria state

Victoria reports 331 new COVID-19 cases, 19 deaths NSW reports biggest one-day rise in cases since April SYDNEY: Australia's second-most populous state reported only a small rise in new COVID-19 infections on Tuesday, boosting hopes that case numbers are stabilising after a second wave f Read More...


Don’t let COVID-19 overshadow the risk of dengue

The human race is currently going through a scourge of the COVID-19 pandemic, caused by a newly discovered coronavirus, SARS-CoV-2, which originated in Wuhan, China in December 2019. Since then, more than 200 countries have fallen victim to this virus. There are more than 4 million active cases acro Read More...

Antonio Banderas says he's tested positive for coronavirus

NEW YORK: Antonio Banderas says he's tested positive for COVID-19 and is celebrating his 60th birthday in quarantine. The Spanish actor announced his positive test in a post Monday on Instagram. Banderas said he would spend his time in isolation reading, writing and “making plans to begin to g Read More...

Ganges River flows with history and prophecy for India

ALONG THE GANGES: More than 2,000 years ago, a powerful king built a fort on the banks of India’s holiest river, on the fringes of what is now a vast industrial city. Today, little of the ancient construction remains, except for mounds of rubble that tannery workers pick through for bricks to b Read More...