Nepal grapples with widening trade deficit of Rs 811 billion in the first seven months of current fiscal year

KATHMANDU: Nepal has encountered a substantial trade deficit, reaching Rs 811 billion 110 million, amid foreign trade totaling Rs 984 billion 770 million in the initial seven months of the current fiscal year 2080/81 BS.

The data, released by the Department of Customs, reveals imports amounting to approximately Rs 897 billion 944 million and exports totaling Rs 86 billion 831 million as of mid-February (end of Nepali month Magh).

In comparison to the corresponding period in the previous fiscal year, imports have witnessed a 2.31 percent decrease, while exports have dropped by 7.07 percent. The Department notes a 1.77 percent reduction in the trade deficit and an overall decline of 2.75 percent in trade compared to the previous year.

India remains Nepal’s largest trading partner, with imports from India reaching Rs 554.75 billion, while exports amounted to only Rs 58.72 billion. Consequently, Nepal grapples with a trade deficit of Rs 496.36 billion with India alone during the seven months of the current fiscal year.

China stands as the second-largest trading country, contributing to a trade deficit of Rs 171.23 billion. Imports from China reached Rs 173.91 billion, with exports totaling Rs 1.85 billion.

The United Arab Emirates secures the third position in countries with a high trade deficit for Nepal. Imports from the UAE amounted to Rs 15.69 billion, while exports stood at Rs 1.58 billion, resulting in a trade deficit of Rs 14.11 billion.

In contrast, Nepal exhibits a trade surplus with the United States among its foreign trade partners. Imports from the US reached Rs 9.17 billion, with exports totaling Rs 9.54 billion, resulting in a trade surplus of Rs 364.7 million.

Despite these challenges, Nepal grapples with trade deficits with countries such as Denmark, Norway, Afghanistan, and the Maldives, among others.

The highest imports during this reporting period were petroleum products, including diesel (Rs 77.41 billion), petrol (Rs 38.82 billion), and LP Gas (Rs 30.31 billion).

Additionally, iron-related materials worth Rs 22.66 billion and smartphones amounting to Rs 17.38 billion were imported in the same period.

Fiscal Nepal |
Thursday February 22, 2024, 11:44:17 AM |

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