Nepal’s Current Account Surplus Jumps to USD 561M: BoP Surges in 2025/26

Nepal’s external sector has posted a significant improvement in FY 2025/26, with the current account recording a surplus of USD 561 million in the first month, nearly double the USD 247 million surplus from the same period last year. The Balance of Payments (BoP) report released by Nepal Rastra Bank highlights that strong remittance inflows, higher reserve accumulation, and narrowing trade deficits in services contributed to this sharp rise.

The goods deficit narrowed to USD 787 million, compared to over USD 801 million a year earlier, while the services deficit also improved slightly. Inflows from ICT services (USD 7 million net) and professional consulting services (USD 25 million net) helped reduce the overall gap in the services sector.

At the same time, remittance inflows reached USD 1.27 billion, providing a robust cushion against the persistent merchandise trade deficit. Secondary income flows pushed the overall current account balance upward, ensuring Nepal’s BoP stability.

On the financial side, Nepal also witnessed a financial account surplus of USD 577 million, driven by a sharp increase in foreign reserves (USD 671 million). However, foreign direct investment (FDI) continued to remain negative, with USD 4.4 million in net outflows.

Analysts note that while the surplus is encouraging, it still reflects Nepal’s dependence on remittances and reserves rather than export competitiveness or FDI inflows. They caution that rising imports in the coming months could test the sustainability of this surplus.