KATHMANDU, July 27: Nepal’s trade deficit in the last fiscal year dropped by 16.71% to Rs 1.1 trillion with a fall of a double digit percent point in import expenses.
According to the Department of Customs (DoC), Nepal paid a total import bill of Rs 1.19 trillion, a decline of 15.63% in 2019/20. Along with imports, the export earnings also fell by a nominal 0.98% as a result of the coronavirus impact. The country that enjoyed growth in the exports up to 11 months of the last fiscal year resorted to negative value due to heavy fall in exports in the final month, according to the DoC statistics.
As per the officials of the Ministry of Industry, Commerce and Supplies, imports fell by a notable amount after the government imposed import restriction measures along with the lockdown and coronavirus that grappled the country for almost four months on the year end.
With the narrowed trade deficit, the country’s imports and exports ratio has come down to 12.45 from 14.61 in the previous fiscal year. It means that Nepal imported goods worth Rs 12.45 for every export earning of Re 1 in 2019/20.