Economic downturn

Latest Rastra Bank figures show that Nepal's foreign currency reserves continued to plummet in the past month, while the trade gap widened.  Hard currency reserves fell by $510 million to $10.47 billion in one month -- this is equivalent to only six months of imports. The falling reserve is affecting imports, and indirectly government revenue from tax. Nepal's trade deficit increased to Rs150.3 billion in October-November, doubling from Rs73.1 billion the previous month. Remittance from Nepali workers abroad declined by 7.6% to Rs312.14billion in October-November, and had fallen by the same amount the previous month. So far this fiscal year, Nepal exported only Rs6.5 billion worth of goods, while its imports have gone up to Rs82.1 billion.