Nepal’s nine months’ export earnings could not finance its one month’s imports expense

Published On: April 21, 2024 09:30 PM NPT By: Republica  | @RepublicaNepal

Nepal imported goods of Rs 137 billion last month, while exports of nine months record only Rs 113 billion 

KATHMANDU, April 21: Nepal posted a pathetic performance in its foreign trade as of the third quarter of the current fiscal year, with imports recording Rs 137 billion in the past one month compared to total exports earnings of only Rs 113.94 billion in the entire nine months.

The records with the Department of Customs (DoC) show the huge gap in the country’s imports expense and exports revenue. While the country’s import expenses dropped 2.84 percent to Rs 1.167 trillion, its export earnings declined 3.66 percent to Rs 113.94 billion in the first nine months of FY 2023/24.

In month-wise comparison, Nepal’s import declined by Rs 6 billion (four percent) in the past one month. During mid-March and mid-April last year, the country spent Rs 143 billion for imports.

On the other hand, the country’s exports also declined in the past month. Exports were valued at Rs 13.32 billion, slightly less than exports of Rs 13.48 billion in the review month last year.

With the decline in both the imports and exports, the overall trade decreased by 2.92 percent. Due to heavy fall in imports, the country’s trade deficit declined 2.75 percent.

Due to economic slowdown, Nepal has been facing a heavy decline in both its imports and exports. Although the banks have reduced interest rates by notable rates, they are left with heavy stocks of loanable funds due to lack of demand for loans.

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