KATHMANDU, Nov 24: Nepal’s trade deficit in the first four months of the current fiscal year widened by 56.83 percent compared to the same period in 2020/21 despite a notable rise in the export earnings during the period.
The records with the Department of Customs (DoC) show that the country’s negative balance of trade has been up from Rs 362.29 billion to Rs 568.17 billion during mid-July and mid-November. Over the period, Nepal earned Rs 82.12 billion, more than the double of the amount in the review period last year.
With a rise in export volume, Nepal’s share of export earnings in the total trade increased to 11.21 percent from 9.08 percent. However, the country was unable to benefit out of the surge in its exports due to a significant rise in the import expenses.
According to the DoC, import expenses during the period increased by 61.57 percent to Rs 650.29 billion. Nepal witnessed a trade deficit worth Rs 319 billion with India, the largest trading partner of the landlocked country.