Nepal’s Trade Deficit in Last FY Stood at Rs 1440.60 Billion Despite One Percent Decline

Nepal’s trade deficit stood at Rs 1440.60 billion in the fiscal year 2023/24, which is a 1.0 percent decline compared to the previous fiscal year when such a deficit had decreased by 15.5 percent, according to the latest report of Nepal Rastra Bank.

The Current Macroeconomic and Financial Situation Report published by the central bank on Sunday states that the export-import ratio decreased to 9.6 percent in the review year from 9.7 percent in the previous year.

During 2023/24, merchandise exports decreased 3.0 percent to Rs 152.38 billion against a decrease of 21.4 percent in the previous year.

Destination-wise, exports to India and other countries decreased 3.3 percent and 4.3 percent respectively whereas exports to China increased 46.6 percent.

Exports of zinc sheet, particle board, juice, polyester yarn and thread, oil cakes among others, increased whereas exports of palm oil, soybean oil, woolen carpet, brans, jute goods, among others, decreased in the review period, the report added.

In the review year, merchandise imports decreased 1.2 percent to Rs 1592.99 billion against a decrease of 16.1 percent a year ago.

Destination-wise, imports from India and other countries decreased 3.0 percent, and 17.6 percent respectively whereas imports from China increased 34.2 percent.

Imports of transport equipment, vehicle and other vehicle spare parts, readymade garments, aircraft spare-parts, electrical equipment, other machinery and parts among others, increased whereas imports of crude soybean oil, gold, hot rolled sheet in coil, crude palm oil, rice/paddy among others, decreased in the review year.

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