KATHMANDU, July 22: Nepal’s trade deficit in the last fiscal year rose 27.26 percent to Rs 1.398 trillion despite a notable rise in export earnings during the period.
The records with the Department of Customs (DoC) show that Nepal’s net negative balance in its foreign trade rose by Rs 299 billion during mid-July 2020 and mid-July 2021 from the amount of Rs 1.099 trillion in the previous year. According to the government officials, the widening gap in import and export was observed mainly with a whopping rise in imports after the government lifted the over four months of lockdown in July last year.
According to the DoC, the country’s export earnings during the review period rose by 44.43 percent to Rs 141.12 billion. This was the first time Nepal's export earnings rose above Rs 100 billion.
Despite a significant rise in exports, the country failed to benefit from the foreign trade as its net earnings from the transaction with the international market due to the heavy increase in its import expenses. The DoC records show that the imports during the review period surged by 28.66 percent to Rs 1.539 trillion.
Nepal’s import to exports ratio dropped to 10.91 from 12.25. It means that the country spent Rs 10.91 in purchase of goods from abroad for every export earnings of Re 1.