Nepal's trade deficit exceeds Rs 1.314 trillion as exports continue to slump

Published On: June 22, 2024 08:25 AM NPT By: Republica  | @RepublicaNepal

Nepal’s imports reach Rs1.4 trillion as exports limited to only Rs 100 billion

KATHMANDU, June 22: Nepal continues to struggle with a significant trade deficit, reaching Rs 1.3144 trillion by the end of May 2024/25.

According to the data from the Department of Customs, while imports of goods and services have slightly decreased, the decline in exports has not been enough to reduce the trade imbalance substantially.

The trade deficit has seen a slight improvement, decreasing by 1.72 percent compared to the same period last year when it stood at Rs 1.3373 trillion. Imports have dropped by 1.84 percent, amounting to Rs 1.4537 trillion by the end of May, down from Rs 1.4809 trillion in the previous fiscal year. However, exports have also decreased by 3.01 percent, totaling only Rs 139.26 billion compared to Rs 133.7 billion last fiscal year.

In the first 11 months of the current fiscal year, Nepal imported petroleum products worth Rs 300 billion. This amount alone is more than twice of Nepal's total exports, highlighting the heavy reliance on fuel imports. Additionally, Rs 80.58 billion was spent on vehicle imports, Rs 1.097 trillion on iron and steel, Rs 26 billion on vegetable products, and Rs 10.42 billion on tea and coffee.

In terms of the major trading partners, India continues to remain Nepal's largest trading partner, with imports from India valued at Rs 908 billion and exports to India at Rs 94 billion. Trade with China is also significant, with Rs 272 billion worth of goods imported from China, while exports to China stand at a mere Rs 2.4 billion.

11-month foreign trade overview

Import: Rs 1.453 trillion

Export: Rs 139 billion

Total foreign trade: Rs 1.592 trillion

Trade deficit: Rs 1.314 trillion

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