The country´s merchandise imports surged 32 percent to Rs 178.84 billion in the four-month period to November 15, as against a rise of 11.8 percent reported in the same period last fiscal year. This compares with merchandise exports of Rs 26.46 billion, up 11.7 percent, reported in the first four months of the current fiscal year. [break]
“Total imports increased in the review period largely due to a sharp increase in imports from both India and other countries,” the latest macroeconomic report of Nepal Rastra Bank (NRB) states.
The report shows 33 percent rise in imports from India and 30.2 percent hike in imports from other countries in the four-month period.
“Imports from India went up primarily owing to increase in the imports of petroleum products, MS billet, vehicles and spare parts, chemical fertilizers, and cement, among others,” the report says. “Imports from other countries, on the other hand, increased mainly on account of hike in imports of pipe and pipe fittings, telecommunication equipment parts, readymade garments, gold and edible oil, among others.”
Together, the country imported merchandise goods worth Rs 113.75 billion from India and Rs 65.08 billion from other countries, while goods worth Rs 16.06 billion were exported to India and Rs 10.4 billion to other countries.
As the country´s merchandise imports continued to surge, the current account - the difference in the country´s earnings and expenses on goods and services - posted a deficit of Rs 1.77 billion in the four-month period, as against a surplus of Rs 20.73 billion reported in the same period last year.
The current account deficit was reported despite receiving Rs 127.35 billion in remittance from Nepalis working abroad, a hike of 23.4 percent.
However, the central bank report said the growth in remittance income reported this year was lower than 34.2 percent hike reported in the same period last year, which led the current account to post a deficit. Other reasons, cited by the report, behind the deficit were 0.5 percent drop in tourism earning to Rs 11.59 billion and 76.9 percent growth (Rs 31.76 billion) in expenses like foreign travel to overseas education.
Because of this mismatch, the country´s surplus in balance of payment shrunk to Rs 140.7 million in the four-month period over a surplus of Rs 46.31 billion reported in the same period last year.
Inflation flat at 10.5%
Inflation remained stable at 10.5 percent in November, as hike in prices of non-food items was offset by drop in food prices.
Prices of food items, which make a contribution of 46.82 percent to the inflation basket, fell by 0.5 percent in November. This was due to drop in prices of items like cereal grains, legumes, vegetables, fruits, dairy items, eggs, ghee, oil, sugar, sweets and spices.
However, cost of housing and utilities services and prices of furnishing and household equipment increased during the period.
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