Remarkable Growth in Balance of Payment (BOP) of Nepal: Rs. 67.63 Billion Surplus in Two Months

Apekshya Dhungana, Banking Khabar. Nepal’s Balance of Payment (BOP) registered a surplus of Rs. 67.63 Billion in two months of Fiscal Year 2077/78 i.e. up to Bhadra 2077. This BOP figure seems very impressive as it is 665.9% growth in comparison to Bhadra 2076 even in this situation where every country’s economy is in downward trend due to the effect of Covid-19 all across the world including Nepal. The main reason for BOP surplus is slightly increase in remittance and narrowed trade deficit i.e. narrowed by Rs.52.59 billion due to decrease in major imports like petroleum products, transport equipment and parts, M.S. Billet etc.

In comparison to Shrawan 2077, BOP surplus has increased by Rs. 16.17 billion which is 31.14% growth.

Following bar graph shows the BOP situation, Remittance as well as Trade deficit of Bhadra 2077 in comparison with Bhadra 2076.

Looking at the last five years of Nepal, BOP position of Nepal had been decreasing up to Ashad End 2076 and then suddenly improved in Ashad End 2077 due to major decrease in Trade deficit by Rs. 222.34 billion. In Ashad End 2074, BOP was surplus by Rs. 82.15 billion where as it was surplus by Rs. 282.41 billion in Ashad End 2077 which was Rs. 200.26 billion (243.77%) growth in span of four years. Similarly the situation of Current account i.e. major component of BOP was not impressive in last couple of years but in Ashad End 2077, current account deficit has suddenly decreased by Rs. 233.31 billion due to narrowed trade deficit.

Trend of BOP and Current account of last five years is shown in the below line chart.