KATHMANDU, March 22: Imports have risen as economic activities, which slowed down due to COVID-19, have resumed in the country. The import has increased as the consumption has increased in the country.
According to the Department of Customs, goods worth more than Rs 1.20 billion were imported in the past one month alone. Imports of industrial raw materials and consumer goods have increased.
Goods worth Rs 943.98 billion have been imported in the first eight months of the current fiscal year. This is 2.14 percent more than last year’s record. Nepal had imported goods worth Rs 924.24 billion in the same period last fiscal year.
Most of the imports consist of petroleum products, raw materials used in steel, electrical goods, mobile phones, soybean oil, readymade garments, food grains, vegetables and other items. Despite a sharp decline during COVID-19 wave in the initial months, the import has skyrocketed in recent months. Imports have returned to normal state as people's lives have returned to normal and consumption has increased.
Exports have also increased this year as compared to the previous year. Goods worth Rs 80.77 billion have been exported till mid-March. This is 7.84 percent more than last year. In the corresponding period last year, goods worth Rs 74.90 billion were exported from Nepal.
Meanwhile, the trade deficit increased by 1.63 percent. The trade deficit has reached Rs. 863.20 billion by mid-March this year. The trade deficit during the same period last year was Rs. 849.33 billion.
The share of imports in the total foreign trade of Rs. 1.024 trillion is 92.50 percent and the share of exports is only 7.88 percent. Nepal has carried out trade mostly with India. Goods worth Rs 622 billion have been imported from India alone. India also has the largest share in exports. Goods worth Rs 58.19 billion have been exported to India. The second largest trade deficit Nepal has is with China. The country has a trade deficit of Rs 135.58 billion with China.