KATHMANDU, Aug 24: Nepal witnessed a trade deficit of Rs 119.10 billion in the first month of the current fiscal year (FY), a marginal increase compared to the same period last year.
The records with the Department of Customs (DoC) show that the country’s negative trade balance grew by 2.55 percent during mid-July and mid-August this year. In the same period last year, the figure was Rs 116.15 billion.
The country incurred a trade deficit of Rs 64.08 billion with neighboring India, with imports of Rs 83.53 billion against its exports of Rs 19.45 billion. With China, the landlocked country faced a trade deficit of Rs 27.99 billion, recording exports and imports at Rs 54.8 million and Rs 27.99 billion, respectively. Nepal had a trade surplus with Germany, Afghanistan, the USA, Russia, Belgium and Norway during the review month.
Balance of payment, current account continue to turn deficit
Although the country’s export earnings rose 95.75 percent, its gain from the cross-border trade appeared dismal. In the review month, the export figure almost doubled to Rs 23.93 billion.
Soybean oil ranked first among the items exported from the country. In the review month, soybean oil worth Rs 10.69 billion was exported. It was followed by exports of refined palm oil worth Rs 671.20 million and sunflower oil worth Rs 651.40 million. These edible oils were sold to the southern neighboring country.
Woolen carpet, one of the country’s signature products in exports, stood fourth in the export list. Nepal sold 15,697 square meters of woolen carpet worth Rs 551.89 million alone to the USA. Plywood, fruit juice, yarn, and large cardamom, among others, were the major exports.
On the other hand, the import expenses rose by 11.42 percent. The import figure surged to Rs 143.04 billion from Rs 128.37 billion.
Petroleum products made the highest amount among the import figures. According to the DoC, Nepal imported petrol worth Rs 5.77 billion, diesel of Rs 5.88 billion, cooking gas of Rs 4.66 billion and aviation fuel of Rs 1.28 billion.
Crude soybean oil worth Rs 10.80 billion, smartphones worth Rs 3.41 billion, motorcycles worth Rs 1.74 billion, iron products worth Rs 3.07 billion and gold worth Rs 1.52 billion were among the major imported goods.
In the review month, the share of exports accounted for 14.33 percent of the total volume of trade, up from 8.70 percent in the same period of the last FY. Likewise, the import to export ratio declined to 5.98 from 10.50.
