Country´s total trade deficit in the first nine months of 2012/13 stood at Rs 385.29 billion, posing a huge challenge before the policy makers to maintain trade balance amid surging imports.[break]
Nepal´s total export during the review period increased by a meager 1.1 percent to Rs 56.53 billion compared to figures of the same period in the last fiscal year, while total imports surged by a whopping 21.9 percent to touch Rs 441.82 billion.
Share of imports in total trade stood at only 11.3 percent in the review period which means country´s imports is almost eight times higher than the exports. Total trade increased by 19.1 percent to Rs 498.35 billion, while trade deficit shot up by 25.7 percent during the review months.
Commenting on Nepal´s disappointing trade figures, economists have suggested that the country focus on increasing agro-based production to contain burgeoning imports as a short-term measure to control soaring trade deficit.
Economist Chiranjibi Nepal said increasing production of farm-based products to substitute imports can be a short-term measure to bring down trade deficit. “We can bring down trade deficit in the long run by increasing hydropower generation and reducing imports of petroleum and electrical products including inverters,” said Nepal, who is also the economic advisor at the finance ministry.
Like in the past, iron & steel, woolen carpet, yarn, textile, readymade garments (RMGs) and cardamom were the country´s top export in the review period. Similarly, petroleum products, iron & steel, machineries, electronics, vehicles, cereals, fertilizers, cements, cement clinkers, pharmaceutical products and gold were the country´s leading imports.
Export of iron & steel increased by 5.4 percent to touch Rs 9.07 billion in the review period. Similarly, yarns became country´s second leading exports even though its export dropped by 10.2 percent to Rs 4.27 billion. Export of textile rose marginally by 5.9 percent to Rs 3.96 billion, while export of woolen carpets and RMGs plunged by 15.6 percent and 18.7 percent, respectively to Rs 3.94 billion and Rs 2.73 billion.
Nepal´s total exports earning in the review period is even insufficient to pay import bill of petroleum products.
Import of petroleum products - Nepal´s largest import - increased by 29 percent to Rs 80.59 billion during the review period. Similarly, import of iron & steel also shot up by 18.9 percent to touch Rs 43.42 billion, while import of transport vehicles and their parts went up a by whopping 39.8 percent to Rs 25.08 billion.
Nepal imported machinery and their parts worth Rs 24.36 billion - a rise of 28.7 percent rise compared to the amount recorded during the same period in the last year. Import of gold rose by 0.5 percent to Rs 18.93 billion, while import of electronics and electrical equipment increased by 14 percent to Rs 18.14 billion during the period.
Top five imports
- Petroleum Rs 80.59 billion
- Iron & steel Rs 43.42 billion
- Vehicles & parts Rs 25.08 billion
- Machinery & parts Rs 24.36 billion
- Gold Rs 18.93 billion
Top five exports
- Iron & steel Rs 9.07 billion
- Yarns Rs 4.27 billion
- Textiles Rs 3.96 billion
- Carpets Rs 3.94 billion
- RMGs Rs 2.73 billion
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