September 3: All the major indicators of economy, except remittance, remained disappointing during the last fiscal year, according to a report prepared by Nepal Rastra Bank.

According to the annual data released by the Central Bank on Sunday, the country's current account, foreign trade, and balance of payment during the review period were all in deficit.

Due to the low inflow of capital as compared to the outflow, the country’s balance of payment was at a deficit of Rs 67.40 billion.

The balance of payment was in surplus of Rs 94 billion in fiscal year 2017-18.

Likewise, the foreign exchange reserve had declined along with foreign direct investment in previous fiscal year.

The rising trade deficit resulted in a decline of foreign exchange reserve by Rs 63.9 billion.

The total value of foreign exchange reserve in fiscal year 2017-18 was Rs 1102.5 billion which dropped to Rs 1038.9 billion in 2018-19.

Similarly, foreign direct investment also decreased by Rs 3.3 billion in last fiscal year. Nepal had received foreign investment of Rs 17.5 billion in 2017-19 which dropped to Rs 13.7 billion in 2018-19.     

Economists have warned of a crisis if there is no improvement in these vital economic indicators.

Dr Posh Raj Pandey, chairman of South Asia Watch on Trade, Economics and Environment, suggested the government to increase export rather than cutting down import.

He opined that a situation might arise when the government might have to announce a list of goods to exclude from importing into Nepal when the country can no longer sustain the economy only through remittance.

While all the indicators were negative, remittance grew by 16.5 percent to Rs 878.27 billion during FY 2018-19. Pandey said that remittance alone cannot sustain the economy if the current trend continues.