Fiscal Nepal
First Business News Portal in English from Nepal
KATHMANDU: Nepal’s economy has shown clear signs of recovery in the last fiscal year despite the government taking no concrete steps to stimulate growth. Key indicators such as imports, exports, vehicle sales, and high-value property transactions all point toward rising market demand and a bounce-back in economic activity.
According to the Department of Customs, imports increased by 13.25% in the last fiscal year, reaching NPR 1.8 trillion. Diesel topped the list, with imports worth NPR 128.76 billion, followed by a surprising surge in raw soybean oil, which crossed NPR 108.95 billion, overtaking petrol imports. Petrol imports totaled NPR 64.12 billion, and LPG imports stood at NPR 62.58 billion. Smartphones ranked sixth among the most imported items.
While imports dipped slightly in Ashar (mid-June to mid-July)—at NPR 160 billion from NPR 170 billion in Jestha—officials attribute this to the closure of the Rasuwagadhi customs point due to flooding in late Ashar. Nonetheless, imports stayed strong throughout the fiscal year, peaking in months like Poush and Magh.
On the export front, Nepal saw a remarkable 81.8% jump, with exports totaling NPR 277 billion, compared to NPR 152 billion the previous year. Soybean oil exports to India, processed from third-country raw materials, contributed significantly to this rise, making it the top export item.
Despite this export boom, officials and experts note that the government had no significant role in facilitating this growth. The spike is largely attributed to private-sector activity and favorable market conditions, especially in India.
Vehicle imports—another key indicator of domestic demand—also surged. Passenger electric vehicles (EVs) saw a 14% rise in imports, with 13,578 units worth NPR 31.76 billion brought into the country. These EV imports alone generated NPR 19.70 billion in customs revenue.
Commercial EV imports jumped 73%, with 3,813 units worth NPR 11.06 billion, resulting in NPR 2.73 billion in revenue. Two- and three-wheelers also saw a boom, with over 200,000 units worth NPR 24.5 billion imported, up 34% from the previous year.
Even fuel-based vehicles, which had slowed in earlier years, saw an increase. Fuel passenger car imports hit NPR 6.93 billion for 4,978 units, and commercial fuel vehicles worth NPR 7.28 billion (4,237 units) entered the country.
In the real estate sector, property transactions in prime locations have picked up. While the total number of land deeds slightly declined in Ashar (55,524) compared to Jestha (56,010), revenue from property sales increased by NPR 1.82 billion, indicating larger, higher-value transactions. NPR 6.55 billion was collected in property transfer tax in Ashar, up from NPR 4.72 billion in Jestha.
Compared to Ashar of the previous fiscal year, which had 46,179 land deeds and NPR 4.61 billion in revenue, this year’s performance underscores a rebound in high-end real estate.
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