Nepal’s Trade Deficit Widens to Rs 649.68 Billion in First Five Months of Current FY

Nepal’s trade deficit widened to Rs 649.68 billion in the first five months of the current fiscal year (mid-July to mid-December), largely due to rising import costs and comparatively low export earnings.

According to the Department of Customs, the country’s total foreign trade during the review period stood at Rs 882.69 billion. Imports amounted to Rs 766.18 billion, while exports totaled just Rs 116.50 billion, despite a notable rise in exports

Compared to the same period of the previous fiscal year, imports increased by 15.83 percent, while exports surged by 58.17 percent, the department said.

Nepal recorded a trade deficit of Rs 339.02 billion with India over the five-month period. Imports from India stood at Rs 434.06 billion, while exports were valued at Rs 95.04 billion.

Similarly, imports from China reached Rs 163.73 billion, whereas exports to the northern neighbour remained minimal at Rs 466.8 million.

Romania emerged as the top country with which Nepal recorded a trade surplus, amounting to Rs 63.4 million. Nepal also posted trade surpluses with Sweden and Iraq during the same period.

Petroleum products dominated the import basket. The country imported diesel worth Rs 45.6 billion, petrol worth Rs 27.33 billion, and liquefied petroleum gas valued at Rs 22.39 billion. Other major imports included crude soybean oil worth Rs 46.97 billion, iron and steel products valued at Rs 21.84 billion, and smartphones worth Rs 19.13 billion.

Soybean oil was the single largest import item at Rs 46.55 billion.

On the export side, large cardamom generated earnings of Rs 5.53 billion, followed by woollen carpets worth Rs 4.13 billion and sunflower oil valued at Rs 3.73 billion during the review period. – With inputs from RSS