Nepal's Trade Deficit Widens by 11.2 Percent in First Eight Months of FY 2082/83

Kathmandu. In the first eight months of the current fiscal year 2082/83, Nepal's foreign trade deficit has increased by 11.2 percent, reaching 1 trillion 98 billion 140 million rupees. According to the data released by Nepal Rastra Bank up to the end of Falgun, the trade deficit, which had grown by 6.2 percent in the same period last year, has accelerated further this year. 

During the review period, although both exports and imports increased, the trade imbalance has widened due to the larger volume of imports. In the first eight months of the current fiscal year, total merchandise exports increased by 20.8 percent to 191 billion 110 million rupees. Last year, such exports had grown at a high rate of 57.2 percent. 

By destination, exports to India increased by 25.3 percent and to other countries by 7.8 percent, while exports to neighboring China saw a significant decline of 53.7 percent. By commodity, exports of items such as soybean oil, cardamom, palm oil, and noodles have increased, while exports of tea, woolen carpets, and handicrafts have decreased.

On the import side, merchandise imports increased by 12.5 percent to 1 trillion 289 billion 250 million rupees. Based on the countries of origin, imports from India increased by 5.1 percent, from China by 21.2 percent, and from other countries by 26 percent. Data shows that imports of crude soybean oil, chemical fertilizers, silver, transport equipment, and telecommunication materials have particularly increased. However, there has been some decline in the imports of items like edible oil, garlic, and lentils.

Looking at the overall trade situation, there is a slight improvement in the export-import ratio. This ratio, which was 13.8 percent last year, has reached 14.8 percent this year. Similarly, goods worth 120 billion 410 million rupees were imported from India by paying in convertible foreign currency, compared to 119 billion 490 million rupees in the previous year.