Import from China soars by 40.4pc

KATHMANDU:

Nepal is gradually becoming one of the bigger buyers of Chinese goods as import from the northern neighbour has been steadily increasing.

Compared to the first eight months of the previous fiscal, import from China increased by 40.4 per cent in the same period of this year, according to the Trade and Export Promotion Centre (TEPC). Nepal imported goods worth Rs 71.8 billion during the first eight months of this fiscal, against Rs 51.15 billion worth of merchandise in the corresponding period of the previous fiscal.

China is the second largest trading partner of Nepal after India. Though India covers 51 per cent of the country’s total trade, the trade volume with China has also been increasing in recent years with import rising from the northern neighbour.

Import of telecommunication equipment, machinery parts, fertilisers and medical equipment increased substantially. Import of telecommunication equipment alone amounted to Rs 10.64 billion in the review period, followed by machine and machinery parts at Rs 6.46 billion.

Likewise, the country imported electric goods of Rs 5.65 billion, chemical fertilisers (Rs 4.88 billion), readymade garments (Rs 3.43 billion) and audio visual parts (Rs 3.05 billion).

The products that witnessed high import growth compared to previous fiscal were steel rods and sheets, pipes and fittings, medical equipment, cameras, machinery parts and ply wood. Among them, machinery parts and medical equipment had high weightage in the total import from the northern neighbour, as per TEPC’s data.

In the review period, import of steel rods and sheets increased heavily — by 3154.9 per cent. The country imported steel rods and sheets worth Rs 511.1 million in the eight-month period compared to Rs 15.7 million in the same period in the previous fiscal.

Import of pipes and fittings soared by 352.5 per cent to Rs 366 million. Similarly, import of medical equipment increased to Rs 1.36 billion, which is an increase of 195 per cent compared to the corresponding period of the previous fiscal.

Adding to the worries of import from China surging massively, the country’s export to the northern neighbour is decreasing.

Nepal’s export to China declined by 11.7 per cent in first eight months compared to the corresponding period of previous fiscal 2013-14. Country’s total export to China stood at Rs 1.89 billion against import of Rs 71.8 billion.

Country’s trade deficit with China amounted to Rs 69.91 billion, which is more than Nepal’s total export in the review period

Source: THT