Nepal’s trade deficit increased 1.8 percent to Rs 237.45 billion during the first two months of the current fiscal year against the 4.7 percent reduction in the corresponding period the previous year, according to the latest report of Nepal Rastra Bank.
The Current Macroeconomic and Financial Situation Report published by the central bank on Tuesday, October 15, added that the export-import ratio decreased to 9.6 percent in the review period from 10.2 percent in the corresponding period last year.
The merchandise exports decreased 5.1 percent to Rs 25.09 billion in the review period, compared to a decline of 7.8 percent in the same period last year.
Read: Consumer Price Inflation Moderates to 3.85 Percent in mid-September: NRB
Destination wise, exports to India, China and other countries decreased by 4.5 percent, 45.3 percent and 3.9 percent, respectively.
India is Nepal’s largest trade partner, followed by China.
Exports of tea, particle board, oil cakes, shoes and sandals and soybean oil among others increased whereas exports of cardamom, zinc sheet, palm oil, readymade garments and herbs among others declined in the review period, according to the central bank.
Similarly, the merchandise imports increased 1.1 percent to Rs 262.54 billion compared to a decrease of 5.1 percent a year ago.
Read: Nepal Receives Rs 263.14 billion in Remittance in First Two Months of Current FY
Destination-wise, imports from India and other countries decreased by 0.1 percent and 5.1 percent, respectively, while imports from China increased 11.9 percent.
Imports of transport equipment, vehicle and other vehicle spare parts, edible oil, chemical fertiliser, telecommunication equipment and parts, and garlic among others increased. But, imports of gold, M.S. billet, rice/paddy, crude palm oil and electrical equipment among others decreased in the review period.
Based on customs points, exports from Bhairahawa, Dry Port, Kailali, Krishnanagar and Nepalgunj Customs Offices increased whereas exports from all the other major customs points decreased in the review period.
Read: Current Account, BOP in Surplus until mid-September this FY
Similarly, imports from Bhairahawa, Dry Port, Jaleshwor, Kailali, Mechi, Rasuwa and Tatopani Customs Offices increased whereas imports from all the other major customs points decreased in the review period.
Between mid-July and mid-September this year, merchandise imports from India by paying convertible foreign currency amounted to Rs 29.93 billion, compared to Rs 32.14 billion in the same period last fiscal year, the report said.