BOP
·

By Sandeep Chaudhary

Nepal's Balance of Payments Shows Strong Recovery Despite Past Deficit

Nepal's Balance of Payments Shows Strong Recovery Despite Past Deficit

Nepal’s external sector has shown a remarkable turnaround over the past few fiscal years, particularly in the balance of payments (BOP) position, reflecting an improvement in the country's international economic transactions. According to the latest data from Nepal Rastra Bank, the BOP recorded a significant surplus of Rs. 491.4 billion by mid-June 2025, continuing the positive trend from the previous fiscal year.

Looking back, Nepal faced a sharp deficit of Rs. 252.4 billion in FY 2021/22, largely due to heightened imports, subdued remittances, and global economic shocks. However, this trend reversed dramatically in FY 2022/23, as the BOP swung to a surplus of Rs. 285.8 billion. The momentum strengthened in FY 2023/24, when the annual surplus peaked at Rs. 502.5 billion — the highest recorded in recent years — before slightly tapering to Rs. 425.7 billion by mid-June of the same year.

The sustained surplus into mid-June 2025, at Rs. 491.4 billion, suggests a stable inflow of foreign currency through remittances, tourism revival, and a controlled import regime. This improvement is a strong indicator of external sector resilience and reflects well on macroeconomic stability.

The transition from a marginal surplus of just Rs. 1.2 billion in 2020/21 to a major recovery post-2022 marks a critical phase in Nepal’s external sector reform. As the country continues to rebuild its foreign reserves and maintain a positive BOP, policymakers may find room to relax monetary constraints and focus on sustainable economic growth strategies.

Related Blogs

NEPSE : Market Slows Down Despite Being in Peak Season!
Top

2 min read

NEPSE : Market Slows Down Despite Being in Peak Season!

NEPSE : Market Slows Down Despite Being in Peak Season! The months of Shrawan and Bhadra are usually considered the "season" for the Nepali stock market, often marked by increased trading volume, bullish trends, and high investor participation. Historically, this period has brought positive momentum. However, this fiscal year 2081/82, the market has shown weakness right from the beginning of the season. Following the release of the monetary policy, the market experienced a short-lived rally for about two weeks — with NEPSE rising and daily turnover nearing Rs. 10 Arba. But over the past eight consecutive trading days, turnover has been in a downtrend, signaling renewed investor uncertainty. On Wednesday, NEPSE closed with a minor decline of 1.94 points at 2832.06. Despite the limited index movement, turnover shrank significantly — from Rs. 9.33 Arba on Tuesday to Rs. 7.63 Arba on Wednesday. Out of 13 sub-indices, only 5 closed green while the remaining 8 declined. The Microfinance sub-index led the gainers with a 1.34% rise, showing some resilience in an otherwise dull market. Three stocks hit the upper circuit (10% gain) — VIN Nepal Laghubitta, Mahuli Laghubitta, and Trade Tower Ltd. Likewise, Samaj Laghubitta and Swabhiman Laghubitta rose by nearly 8%. In terms of turnover, Ngadi Group Power Ltd. topped the list with Rs. 29.45 Crore, followed by Himalayan Reinsurance (Rs. 28 Crore) and Shivam Cements (Rs. 24+ Crore). The consistent fall in turnover during a period typically known for bullish behavior raises concerns about the market’s health. Analysts warn that while monetary policy gave a short-term boost, long-term confidence still demands clear strategies and investor-friendly reforms.

Dipesh Ghimire

·

6 Aug, 2025

Correction Phase or Start of a Downtrend? Investors in Dilemma as NEPSE Falls
Top

3 min read

Correction Phase or Start of a Downtrend? Investors in Dilemma as NEPSE Falls

Correction Phase or Start of a Downtrend? Investors in Dilemma as NEPSE Falls Despite listed companies in the Nepal Stock Exchange (NEPSE) publishing strong fourth-quarter financial results for FY 2080/81, the stock market has taken a sharp dip. While net profits, EPS, and other key financial indicators have improved across the board, Tuesday's trading session saw the NEPSE index drop by 41.78 points to close at 2,833.57. This decline has shaken investor sentiment and triggered confusion about the market’s future direction.

Dipesh Ghimire

·

5 Aug, 2025

NEPSE Market Recovery: After 3-Day Fall, Bullish Reversal Pattern Expected
Top

2 min read

NEPSE Market Recovery: After 3-Day Fall, Bullish Reversal Pattern Expected

NEPSE Market Recovery: After 3-Day Fall, Bullish Reversal Pattern Expected After a continuous three-day decline, the NEPSE index showed a double-digit recovery on Monday. On Saun 13 (July 29), NEPSE had reached a recent high of 3020 points but subsequently dropped by 143 points over the next three trading days, falling to 2858.90 on Sunday. However, Monday's market closed 16.46 points higher at 2875.36, providing a sense of relief to investors. Analysts suggest this recent decline was merely a technical correction. Profit booking from short-term investors and the psychological resistance around the 3000 level created downward pressure on the market. Monday’s rebound now signals the potential for a trend reversal and renewed momentum.

Dipesh Ghimire

·

4 Aug, 2025

Loan Culture Grows in Nepal, But Poor Planning Poses Economic Risk
Top

2 min read

Loan Culture Grows in Nepal, But Poor Planning Poses Economic Risk

Loan Culture Grows in Nepal, But Poor Planning Poses Economic Risk In recent years, borrowing from banks and financial institutions has become commonplace among the general public and business owners in Nepal. While access to credit opens up opportunities for growth, dreams, and development, experts warn that loans taken without clear plans, proper financial assessment, or risk evaluation can result in serious long-term financial burdens.

Dipesh Ghimire

·

4 Aug, 2025

NEPSE Nears Support Zone After 143-Point Drop in 3 Days, Investors Hope for Rebound
Top

2 min read

NEPSE Nears Support Zone After 143-Point Drop in 3 Days, Investors Hope for Rebound

NEPSE Nears Support Zone After 143-Point Drop in 3 Days, Investors Hope for Rebound NEPSE Plunges Sharply The NEPSE index witnessed a steep fall of 143 points over the last three trading days, signaling short-term bearish sentiment. On Tuesday (Shrawan 13), the index touched a recent high of 3,002 points. However, it declined by 48 points on Wednesday, 31.5 points on Thursday, and 63.73 points on Sunday — a total correction of nearly 5%.

Dipesh Ghimire

·

3 Aug, 2025

ISIN Controversy Heats Up Nepal's Securities Market – Hidden Agenda or Legal Reform?
Top

3 min read

ISIN Controversy Heats Up Nepal's Securities Market – Hidden Agenda or Legal Reform?

ISIN Controversy Heats Up Nepal's Securities Market – Hidden Agenda or Legal Reform? The Nepali capital market is facing serious turbulence over a controversial move by CDS and Clearing Ltd. (CDSC) to assign two International Securities Identification Numbers (ISINs) for promoter and public shares of listed companies. This dual identification system has triggered backlash from private sector stakeholders, legal experts, and even parliamentary committees, raising deep concerns about regulatory overreach and possible political interference.

Dipesh Ghimire

·

3 Aug, 2025

Nepal Government Records Over Rs 27 Billion Revenue in First 15 Days of FY 2082/83, Spending Near Rs 16 Billion
Top

2 min read

Nepal Government Records Over Rs 27 Billion Revenue in First 15 Days of FY 2082/83, Spending Near Rs 16 Billion

Nepal Government Records Over Rs 27 Billion Revenue in First 15 Days of FY 2082/83, Spending Near Rs 16 Billion The Government of Nepal has reported encouraging early signs in public finance management for fiscal year 2082/83. Within the first 15 days of the fiscal year, the government generated Rs. 27.46 billion in revenue while spending Rs. 15.87 billion.

Dipesh Ghimire

·

1 Aug, 2025

RSDC Laghubitta Records Sharp Profit Decline Despite Robust Deposit Growth
Top

3 min read

RSDC Laghubitta Records Sharp Profit Decline Despite Robust Deposit Growth

RSDC Laghubitta Records Sharp Profit Decline Despite Robust Deposit Growth RSDC Laghubitta Bittiya Sanstha Limited has published its unaudited financial report for the fourth quarter of fiscal year 2082, revealing a mixed performance marked by a significant decline in profit and core income, even as deposits surged by over 27%. The microfinance institution, which caters to rural and small-scale borrowers, faces margin pressure and declining earnings per share despite maintaining capital adequacy and net worth stability.

Dipesh Ghimire

·

1 Aug, 2025

Profit Booking Pressure: NEPSE Fails to Hold 3000 | 80-Point Drop in 2 Days | Consecutive One-Candle Sell!
Top

2 min read

Profit Booking Pressure: NEPSE Fails to Hold 3000 | 80-Point Drop in 2 Days | Consecutive One-Candle Sell!

Profit Booking Pressure: NEPSE Fails to Hold 3000 | 80-Point Drop in 2 Days | Consecutive One-Candle Sell! nepse nepse nepse At the start of the week, NEPSE crossed its highest point in almost four years. However, in the last two trading days, the index has sharply declined, dropping below the psychological resistance level of 3000. After reaching 3002 on Tuesday, the market fell by 48 points on Wednesday and 31.50 points on Thursday, totaling a nearly 80-point decline. By Thursday, the index settled at 2922.63.

Dipesh Ghimire

·

31 Jul, 2025

NEPSE Breaks Psychological Barrier: Crosses 3000 Mark, Strong Technical Signals, Institutional Buying Surge
Top

2 min read

NEPSE Breaks Psychological Barrier: Crosses 3000 Mark, Strong Technical Signals, Institutional Buying Surge

The Nepali stock market has finally breached the psychological resistance of 3000 points on Tuesday, reaching a new height. NEPSE index climbed by 30.76 points to close at 3002.7—its highest in 52 weeks. On Sunday, the index had reached 3013 intraday but corrected back to 2964 by the close. However, Tuesday's session saw a strong upward move, closing above 3000 after peaking at 3028 intraday. Technical analysts suggest that NEPSE's resistance zone lies between 3000–3050 points. If this level is broken, the next major resistance is projected around 3180–3230 points. On the downside, support is seen near 2750–2800. Compared to the previous bull trend, the current rally has crossed significant levels in a short time, implying further upside potential.

Dipesh Ghimire

·

29 Jul, 2025