External sector continues to be strong, domestic economy is not improving

According to the report, foreign exchange reserves are making new records every month, remittances are continuously increasing, current account balance and current account are continuously in surplus, interest rates are decreasing. But looking at government finances, capital expenditure has not increased as expected, the situation of revenue collection is critical. Revenue collection barely covers current expenses. As the external sector of the economy is becoming stronger, even though the government has been given enough opportunities to spend on infrastructure development, experts say that the internal economy has not improved due to the inability to spend.

Private sector confidence has weakened due to a sluggish economy. For this reason, the private sector has not been able to dare to expand investment even though there is sufficient liquidity in the banks and the interest rate is continuously decreasing. In such a situation, the government should encourage the private sector to invest more in the infrastructure development and productive sectors and encourage the private sector.

"The strong external sector has given the government enough opportunities to spend on development," he says, "because the three levels of government are unable to spend, economic activities have not been able to run." Due to the lack of credit demand, investable funds have accumulated in the financial system. In such a situation, he suggested that all three levels of government should rapidly increase the development expenditure to keep the economy running.

Last year, the government imposed a ban on the import of 10 items saying that the foreign exchange reserves were under pressure, while the National Bank also arranged for a cash margin to be kept on the certificates. Therefore, exports decreased last year. Now all those arrangements have been removed. However, imports and exports are decreasing compared to last year. Economists say that the accumulation of foreign exchange reserves cannot be said to have improved the external sector as imports and exports are continuously decreasing. They say that the rate of inflation is decreasing, the fact that the credit flow is not increasing even though the interest rate is decreasing is a sign that the economy is in recession.

According to Rashtra Bank, the country's total foreign exchange reserves have increased by 2 trillion 33 billion 46 million rupees in the last eight months. It has increased by 21.7 percent compared to the end of last June. Last June, the total foreign exchange reserves were 15 trillion 39 billion 36 billion rupees. By the end of last February, it has increased to 18 trillion 72 billion 82 billion. Such reserves in US dollars were 11.71 billion at the end of last June. According to the Rastra Bank, it increased by 20.8 percent to 14.14 billion by the end of last February. Rashtra Bank claims that the foreign exchange reserves until last February will be enough to support the import of goods for 14.8 months and goods and services for 12.4 months.

080 In February, the annual point consumer price inflation rate is 4.82 percent. Compared to the same period last year, this growth rate was 7.44 percent. During this period, the price increase of food and beverages group is 5.94 percent and that of non-food and services group is 3.95 percent. According to this, the price increase of maramsala sub-group has increased by 28.17 percent, vegetables by 14.07 percent, pulses and pulses by 11.22 percent, food and food products by 7.35 percent, and dairy products and eggs by 7.11 percent. During the same period, the annual point price increase rate of ghee and oil sub-group decreased by 11.79 percent.

In the eight months of the current year, the annual point price index of the entertainment and culture sub-group under the non-food and service group has increased by 12.61 percent, miscellaneous goods and services by 10.67 percent and education by 7.31 percent. But the annual point price index of the transportation sub-group has decreased by 1.15 percent, according to the National Bank.

In eight months of the current financial year, 9 trillion 61 billion 22 billion rupees of remittances have entered the country. It has increased by 21 percent compared to the same period of the previous financial year. Remittance inflow increased by 25.3 percent in eight months of last financial year.

Remittance flow in US dollars increased by 18.8 percent to 7 billion 240 million, according to the monthly report of the National Bank. Last year, this influx increased by 14.8 percent. In the last eight months, the number of Nepalis who took the final work permit (institutional and individual-new) for foreign employment was 286,932 and the number of those who took the work permit again was 184,278. is During the same period last year, such numbers were 351 thousand 761 and 192 thousand 559 respectively.

6 trillion 61 billion investable funds have been accumulated in the bank after the loan disbursement did not increase. Although the loan demand is expected to increase from the beginning of the current year, the loan disbursement has not increased as expected due to the economy's situation not being as expected. Experts in the banking sector say that due to the decrease in market demand and decrease in business, the morale of the private sector has fallen, and the private sector cannot be excited for more investment.

As of last week, total deposits of banks and financial institutions are 61 trillion 94 billion and loans are 50 trillion 82 billion. Adding the bonds and loans brought by banks from abroad to the total deposits, the total resources come to 62 trillion 81 billion. Banks and financial institutions can lend up to 90 percent of the mentioned total resources. Now this ratio is 79.69 percent. Based on this, banks and financial institutions currently have around 6.5 billion investable capital accumulated.