KATHMANDU, OCT 31: Nepal’s trade deficit hit Rs 359.17 billion in the first three months of the current fiscal year, which was 13.13 percent less compared to that of the same period last year.
The records with the Department of Customs show that the country’s exports declined by 35.71 percent to Rs 41.82 billion. Similarly, the imports figure fell 16.20 percent to Rs 400.99 billion.
Citing the depleting foreign currency reserves with the country, the government has tightened the imports of a number of luxury items. This has helped reduce largely the country’s import expenses.
But the government policy has failed to boost export earnings. According to the DoC, the ratio of imports to exports increased from 7.36 to 9.59. This means Nepal spent Rs 9.59 to import goods while it earned Re 1 from exports during the review period.
In the first quarter, the major imports were petroleum products (Rs 78.22 billion), iron and steel (Rs 32.10 billion) and fruits, vegetables and edible oils (Rs 29.80 billion). Similarly, Nepal exported agricultural products worth Rs 11.38 billion and carpet and textiles worth Rs 3.25 billion.