Current Account and Balance of Payments in Surplus, FDI Inflows Rising

Kathmandu – Nepal’s external sector showed notable improvement in FY 2024/25 (Nepali FY 2081/82), with both the current account and balance of payments (BoP) remaining in surplus.

According to Nepal Rastra Bank, the current account surplus stood at Rs. 409.20 billion, compared to a surplus of Rs. 221.71 billion in the previous year. In U.S. dollar terms, the current account surplus increased from USD 1.67 billion last year to USD 3.01 billion this year.

Capital Transfers and FDI

During the review year, net capital transfers amounted to Rs. 9.84 billion, up from Rs. 5.81 billion in the previous year.

Similarly, foreign direct investment (FDI) – equity only – reached Rs. 12.02 billion, compared to Rs. 8.47 billion in the previous fiscal year, indicating growing investor confidence.

Balance of Payments Surplus

The overall balance of payments (BoP) surplus reached Rs. 594.54 billion, an improvement from Rs. 502.49 billion in the previous year.

In U.S. dollar terms, the BoP surplus rose from USD 3.77 billion to USD 4.37 billion.

The data indicates a strengthening of Nepal’s external financial position. A higher current account surplus, rising capital transfers, and growing FDI inflows are expected to boost foreign exchange reserves further. Experts, however, stress that sustaining this momentum will require a stronger investment climate and export diversification to reduce long-term vulnerabilities.