Nepal’s international trade, which had shrunk in the last two fiscal years, declined further in the first month of the current fiscal year.

The country incurred a trade deficit of around Rs 116.15 billion from international trade totalling around Rs 140.63 billion in between mid-July and mid-August this year, the Department of Customs’ data show.

While the country imported goods worth over Rs 128.37 billion in the period, total exports amounted to only around Rs 12.22 billion.

Both imports and exports dropped by 0.67% and 9.63%, respectively, in the first month of FY 2024/25, compared to the same period in the last fiscal year.

Nepal’s imports and exports, which had declined by 16.1% and 21.4%, respectively, in the FY 2022/23, had fallen by by 1.2% and 3%, respectively, in FY 2023/24.

Of the total trade deficit, more than Rs 70.1 billion has been incurred in trade with India so far this fiscal year, the data show. While the country’s import bill from the Southern neighbour totalled around Rs 77.68 billion, the export bill amounted to only Rs 7.57 billion.

Around Rs. 893.5 billion or 62% of Nepal’s trade deficit in the last fiscal year was with India, Nepal’s largest trade partner. It was followed by the deficit with China, the second biggest trade partner, which totalled Rs 296.1 billion or around 20.5% of the total.

Nepal’s trade deficit with China grew significantly in a year. It was around 15% in FY 2022/23. The trade deficit with the northern neighbour in the first month of the current fiscal year remained at Rs 24.38 billion, or nearly 21% of the total.

After two major trade partners, Nepal has a high trade deficit with Qatar, Ukraine, Bahrain and Malaysia, while it remains on a trade surplus with 13 countries, reports Rastriya Samachar Samiti, the state owned news agency.

The petroleum products continue to dominate Nepal’s imports. 

According to the Department of Customs, the country imported diesel worth nearly Rs 7 billion, petrol worth around Rs 5.69 billion and liquified petroleum gas (cooking gas) worth over Rs 4.82 billion in a month from mid-July. Smartphones worth over Rs 3.46 billion were also imported in the period.

Similarly, carpets, tea, steel and yarn continue to remain Nepal’s top exports, with the carpet export alone totalling over Rs 1.11 billion in a month.

(With inputs from RSS)