Nepal’s trade shows marginal improvement in first four months of FY 2081/82

November 24, 2024, 11:25:33 AM |

KATHMANDU: Nepal’s import and export activities witnessed slight improvements during the first quadrimester of the current fiscal year 2081/82, according to data released by the Department of Customs. Despite the growth, the country continues to grapple with a substantial trade deficit due to its heavy reliance on imports.

Between Shrawan and Kartik, the value of imported goods reached NPR 513.38 billion, marking a marginal 0.17% increase compared to NPR 512.50 billion during the same period last fiscal year. Exports, meanwhile, totaled NPR 52.67 billion, representing a growth of 4.16% compared to NPR 50.56 billion in the corresponding months last year.

Nepal’s total foreign trade volume during the four months amounted to NPR 566.05 billion, slightly higher than NPR 563.06 billion in the same period of the previous fiscal year. The trade deficit stood at NPR 460.71 billion, reflecting a minor improvement of 0.26% from the NPR 461.93 billion recorded last year.

The import-to-export ratio remains heavily skewed, with imports constituting 90.70% of total trade and exports accounting for only 9.30%. Export contributions showed a slight increase of 3.62% compared to last year, driven by growth in key sectors.

Fuel imports alone accounted for NPR 88.26 billion during the period, far exceeding the total export revenue. Imports of iron and steel stood at NPR 42.58 billion, while NPR 36.95 billion was spent on electrical equipment and parts. Vehicle imports amounted to NPR 32.73 billion, and vegetable-related imports totaled NPR 13.30 billion.

In terms of exports, edible oils and ghee led the way with NPR 5.46 billion, followed by tea and coffee products at NPR 4.64 billion.

India remained Nepal’s largest trading partner, with bilateral trade amounting to NPR 316.88 billion. Nepal exported goods worth NPR 35.76 billion to India while importing goods worth NPR 281.12 billion. Imports from China totaled NPR 103 billion, while Nepal exported goods worth only NPR 680 million to China. Ukraine was the third-largest import source, with goods worth NPR 9.10 billion entering Nepal during the period.

Although there has been a slight improvement in export contributions and a marginal reduction in the trade deficit, Nepal’s dependency on imports continues to pose challenges. Structural reforms and targeted policies to boost domestic production and diversify export markets are essential to addressing the persistent trade imbalance and ensuring economic stability.

Fiscal Nepal |

Sunday November 24, 2024, 11:25:33 AM |