Nepal’s export earnings stands one-tenth of its import expenses in the first half of 2023/24

Published On: January 22, 2024 09:30 AM NPT By: Republica | @RepublicaNepal

Trade deficit fell 2.62 percent, imports declined 3.09 percent and exports slumped 7.23 percent

KATHMANDU, Jan 22: Nepal’s earnings from exports stood only one-tenth of its import expenses in the first half of the current fiscal year.

The statistics unveiled by the Department of Customs (DoC) on Sunday shows that the landlocked country made export earnings of just Rs 74.96 billion compared to its import expense of Rs 768.16 billion during mid-July and mid January this year. The ratio of imports to exports stood at 10.25 percent, which means that Nepal spent Rs 10.25 on imports for every export earning of Re 1.

According to the DoC, the country’s trade deficit however fell 2.62 percent in the review period due to a notable fall in imports amid a small figure of export earnings. In the first half of the current fiscal year, the country witnessed a trade deficit of Rs 693.19 billion. While export earnings declined 7.23 percent, import expenses fell 3.09 percent in the first half of the current fiscal year compared to the same period of last year.

In the review period, Nepal had a trade deficit of Rs 424.44 billion alone with India. Nepal purchased goods worth Rs 474.89 billion from India while the country sold its products of Rs 50.44 billion to its southern neighbor. China, the United Arab Emirates, Ukraine and Malaysia were among the countries that Nepal witnessed the highest trade deficit in a row.

Nepal had a negative trade balance of Rs 145.79 billion with China, Rs 12.26 billion with the UAE, Rs 9.96 billion with Ukraine and Rs 8.60 billion with Malaysia. The country witnessed the highest positive trade balance of Rs 703.6 million with the USA.

In the review period this year, the largest spending was made to purchase petroleum products. Nepal imported diesel worth Rs 66.49 billion, petrol worth Rs 33.91 billion and cooking gas worth Rs 25.45 billion.

Meanwhile, the exports of cement and cement clinkers rose by a whopping amount. During mid-July and mid-January, the country exported these goods worth Rs 1.76 billion. The amount was bigger than the export value of the entire period of the last fiscal year. In 2022/23, Nepal exported these construction materials of Rs 779.3 million.