Nepal Balance of Payments (BoP) 2026: Eight-Month Status
Nepal's Balance of Payments for the first 8 months of FY 2025/26 (mid-July 2025 to mid-March 2026) shows a current account surplus of Rs. 552,847.68 million (~$3,875 million), a significant improvement over the previous year's Rs. 197,026.99 million surplus. This analysis is based on NRB's BPM6-format BoP data.
Current Account: Rs. 552,847.68M Surplus
The current account surplus nearly tripled year-on-year, driven by:
- Secondary Income (net): Rs. 1,591,655.15M — dominated by workers' remittances of Rs. 1,440,950.83M net
- Primary Income (net): Positive from investment income and compensation of employees
- Goods & Services (net): Deep deficit due to Rs. 1,098,138.20M merchandise trade gap, partially offset by service exports
BoP Summary Table (8M Comparison)
| Component | 8M 2024/25 Net (Rs.M) | 8M 2025/26 Net (Rs.M) |
|---|---|---|
| Current Account | 197,026.99 | 552,847.68 |
| Goods & Services | -998,889.68 | Deficit (wider) |
| Secondary Income | 1,149,296.88 | 1,591,655.15 |
| Workers Remittances | 1,046,377.27 | 1,440,950.83 |
| Trade Deficit | 987,393.84 | 1,098,138.20 |
Why Did the Current Account Improve So Much?
The current account surplus grew from Rs. 197B to Rs. 553B because remittance growth (+37.67%) vastly outpaced import growth (+12.54%). Remittances added Rs. 394,573M more than last year, while the trade deficit only widened by Rs. 110,744M. The net gain is roughly Rs. 283,829M — which largely explains the current account improvement.
Capital and Financial Account
The capital account contributed a small surplus from development aid grants. The financial account saw outflows primarily from loan repayments and reserve accumulation. The overall BoP position reflects Nepal's strongest external balance in recent years.
What This Means
A strong BoP surplus means Nepal is accumulating foreign exchange reserves, which strengthens the rupee, improves import cover, and gives the NRB room for monetary policy flexibility. However, the surplus is almost entirely remittance-driven — if remittances slow, the BoP could quickly swing into deficit given the persistent trade gap.