Current Macroeconomic and Financial Situation of Nepal
During the three months of 2021/22, merchandise exports increased 109.5 percent to Rs.65.05 billion
compared to an increase of 14.3 percent in the same period of the previous year. Destination-wise,
exports to India, China and other countries increased 147.1 percent, 19.4 percent, and 27.2 percent
respectively. Exports of soyabean oil, palm oil, oil cakes, polyster yarn & thread, jute goods, among
others, increased whereas exports of tea, cardamom, zinc sheet, wire, medicine (ayurvedic), among
others, decreased in the review period.
During the three months of 2021/22, merchandise imports increased 63.7 percent to Rs.478.52 billion
against a decrease of 12.7 percent a year ago. Destination-wise, imports from India, China and other
countries increased 48.4 percent, 55.2 percent, and 124.2 percent respectively. Imports of petroleum
products, transport equipment, vehicle and parts, crude soyabean oil, crude palm oil, gold, among
others, increased whereas imports of cement, chemical fertilizer, pulses, molasses sugar, tobacco,
among others, decreased in the review period.
Based on customs points, exports from Kanchanpur, Krishnanagar, Mechi, and Nepalgunj Customs
Office decreased whereas exports from all the other customs points increased in the review period. On
the import side, imports from all the major customs points increased except Kailali in the review
period.
The current account remained at a deficit of Rs.151.70 billion in the review period against a surplus
of Rs.33.38 billion in the same period of the previous year. In the US Dollar terms, the current account
registered a deficit of 1.28 billion in the review period against a surplus of 279.9 million in the same
period last year.
In the review period, capital transfer decreased 45.9 percent to Rs.1.92 billion but net foreign direct
investment (FDI) increased 73.5 percent to Rs.5.07 billion. In the same period of the previous year,
capital transfer and net FDI amounted to Rs.3.56 billion and Rs.2.92 billion respectively.
Balance of Payments (BOP) remained at a deficit of Rs.76.14 billion in the review period against a
surplus of Rs.101.09 billion in the same period of the previous year. In the US Dollar terms, the BOP
remained at a deficit of 643.1 million in the review period against a surplus of 851.0 million in the
same period of the previous year.
CPI-based Inflation remained 4.24 percent on y-o-y basis.
Imports increased 63.7 percent and exports increased 109.5 percent.
Remittances decreased 7.6 percent in NPR terms and 7.7 percent in USD terms.
Balance of Payments remained at a deficit of Rs.76.13 billion.
Gross foreign exchange reserves stood at USD 10.98 billion.
Federal Government spending amounted to Rs.234.52 billion and revenue collection Rs.255.04
billion.
Broad money (M2) expanded 2.2 percent. On y-o-y basis, M2 expanded 17.9 percent.
Deposits at BFIs increased 1.2 percent and claims on the private sector increased 7.8 percent.
On y-o-y basis, deposits increased 17.2 percent and claims on the private sector 30.8 percent.