KATHMANDU, June 23: Nepal’s trade deficit rose by 24.61 percent in the first eleven months of the current fiscal year on the soaring imports compared to the slow export growth.
The records maintained by the Department of Customs (DoC) show that the landlocked country witnessed a negative trade balance of Rs 1.26 trillion during mid-July 2020 and mid June 2021. In the review period, the country’s import expenses rose by 25.67 percent to Rs 1.38 trillion. Similarly, the earnings from exports increased by 37.78 percent to Rs 121.25 billion.
Despite an increase in trade deficit, the ratio of imports to exports fell from 12.51 to 11.41 during the review period. It means that Nepal’s expenditure on goods import declined from Rs 12.51 to Rs 11.41 for every earning of Re 1 from exports.
The DoC records show that Nepal enjoyed trade surplus with 24 countries. Nepal’s trade surplus with Denmark was the largest amongst all, with earnings of Rs 177.05 million in net value.
Nepal faced a trade deficit with 133 countries over the period. The largest trade deficit worth Rs 796.39 billion was with India with the landlocked country exporting goods worth only Rs 90.19 billion to its southern neighbor compared to the import of goods worth Rs 886.59 billion from there.