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#NepalEconomy #BoP #ServicesTr
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By Sandeep Chaudhary

Services Deficit Narrows: ICT and Consulting Services Support Nepal’s BoP Stability

Services Deficit Narrows: ICT and Consulting Services Support Nepal’s BoP Stability

Nepal’s services trade deficit showed signs of improvement in the first month of FY 2025/26, as earnings from ICT and professional consulting services helped offset rising outflows from travel and transport. According to Nepal Rastra Bank’s Balance of Payments (BoP) data, the services deficit stood at Rs. 13.3 billion, narrowing compared to Rs. 15.0 billion in the same period last year.

The growth came primarily from telecommunication, computer, and information services, which generated Rs. 1.86 billion in foreign exchange earnings, up significantly from last year. Similarly, professional and management consulting services contributed Rs. 3.5 billion, while other business services added Rs. 680 million.

These inflows helped cushion Nepal’s services account, which is typically dominated by heavy outflows in travel (Rs. −16.3 billion) and transport (Rs. −3.2 billion). With outbound tourism, foreign education, and logistics costs surging, Nepal’s service deficit remains structurally high, but ICT exports are emerging as a bright spot.

Economists note that Nepal’s growing IT outsourcing industry, digital services, and consultancy exports are playing a crucial role in reducing vulnerability. If nurtured with investment and policy support, the services sector could become Nepal’s next growth engine, reducing over-reliance on remittances.

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