Country´s export by the end of the third quarter declined to Rs 45.66 billion from Rs 50.96 billion recorded in the same period last year, says the latest report of Nepal Rastra Bank (NRB). The drop is attributed to eroding exports of woolen carpet (by 32 percent), lentils (by about 26 percent) and readymade garment (by over 20 percent.) [break]
However, the country witnessed a surge of 41.3 percent in imports during the quarter. Imports from India grew by 37.1 percent while third country imports increased by 46.9 percent. The growth in the import from India was recorded on vehicles and spare parts, M.S. billet, petroleum products, M.S. wire and rods and electrical equipment, among others.
Similarly, gold, telecommunication equipment and parts, polythene granules, steel rod and sheet and silver are among goods that recorded remarkable surge in imports from other countries, said the statement.
"As a result of the slowdown in exports and accelerated import growth, the ratio of export to import dropped to 16.1 percent in the first nine months of 2009/10 from 25.3 percent recorded in the same period last year,” said the statement.
Likewise, the remittance receipt in the review period increased only by 9.6 percent to Rs 164.93 billion, compared to the significant growth of 60.3 percent recorded in the corresponding period last year.
Due to hefty rise in trade deficit along with slowing remittance inflows, the BOP recorded a deficit of Rs 22.10 billion as against a surplus of Rs 38.76 billion during the same period last year.
"The current account also registered a deficit of Rs 30.24 billion as against a surplus of Rs 34.62 billion,” the statement added.
According to the report, deposits mobilization of commercial banks increased by 4.8 percent to Rs 576.3 billion as at mid-April 2010, whereas total loans and advances of commercial banks increased by 11.3 percent to Rs 577.2 billion in the review period.
The higher credit disbursement relative to the deposit mobilization of the commercial banks also continued in the third quarter due to which the credit-deposit ratio of the commercial banks increased to 89.1 percent in mid-April 2010 from 81.2 percent in mid-July 2009.
During the period, private sector credit of commercial banks grew by 17 percent compared to a growth of 19.3 percent recorded in the previous year. Of the private sector credit, credit to the production sector increased by 8.7 percent in the review period compared to last year´s growth of 14.1 percent. The liquid assets of the commercial banks stood at Rs 170.7 billion as at mid-April 2010.
Commercial banks used standing liquidity facility (SLF) amounting to Rs 91.8 billion while inter-bank transactions of commercial banks stood at Rs 215.5 billion in the review period.
The gross foreign exchange reserves dropped by 15.8 percent to Rs 235.75 billion in mid-April 2010 from Rs 279.99 billion as at mid-July 2009 as against a growth of 29.8 percent in the corresponding period of the previous year.
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