Nepal’s trade deficit decreased 0.3 percent in the first four months of the current fiscal year compared to a 3.3 percent decline in the corresponding period of the previous fiscal year, according to the latest report of Nepal Rastra Bank. The Current Macroeconomic and Financial Situation Report unveiled by the central bank on Thursday revealed that the country’s trade deficit stood at Rs 460.72 billion as of mid-November this year.

According to the NRB report, the export-import ratio increased to 10.3 percent in the review period from 9.9 percent in the corresponding period of the previous year.

During the four months of FY 2024/25, merchandise exports increased 4.2 percent to Rs 52.67 billion against a decrease of 7.7 percent in the same period of the previous year.

Destination-wise, exports to India increased 8.4 percent, whereas export to China and other countries decreased 18.3 percent and 3.0 percent respectively, added the report.

According to the NRB, exports of soybean oil, tea, polyester yarn and threads, particle board, oil cakes, among others increased whereas exports of palm oil, zinc sheet, readymade garments, juice, ginger among others decreased in the review period.

During the four months of FY 2024/25, merchandise imports increased 0.2 percent to Rs 513.39 billion against a decline of 3.8 percent a year ago. Destination-wise, imports from India and China increased 0.9 and 2.9 percent respectively, while import from other countries decreased 5.0 percent.

 Imports of transport equipment, vehicle and spare parts, edible oil, sponge iron, garlic, telecommunication equipment and parts, among others increased. However, imports of petroleum products, gold, crude palm oil, aircraft spare parts, electrical equipment, among others decreased in the review period, the report stated

Based on customs points, exports from Bhairahawa, Biratnagar, Birgunj Dry Port, Kailali, Krishna Nagar, Mechi, Nepalgunj and Rasuwa customs offices increased whereas exports from all other major customs points decreased in the review period. On the import side, imports from Bhairahawa, Birgunj Dry Port, Jaleshwor, Kailali, Kanchanpur, Rasuwa and Tatopani customs offices increased whereas imports from all other major customs points decreased in the review period.

As per the Broad Economic Categories (BEC), the intermediate and final consumption goods accounted for 48.2 percent and 50.9 percent of the total exports respectively, whereas the ratio of capital goods in total exports remained at 1.0 percent in the review period, the report added. In the same period of the previous year, the ratio of intermediate, capital and final consumption goods remained 55.6 percent, 0.3 percent and 44.1 percent of total exports respectively.

On the imports side, the share of intermediate goods remained 48.7 percent, capital goods 8.7 percent and final consumption goods 42.5 percent in the review period. Such ratios were 49.2 percent, 8.8 percent and 42.1 percent respectively in the same period of the previous year.