Decline in Foreign Trade Marks the Beginning of FY 2080/81

The first month of the current financial year (FY) 2080/81 has seen a notable decline in foreign trade activities. Data from the customs department reveals that imports in Shrawan amounted to goods worth 1 trillion 29 billion 23 crores, marking a 1.56 percent decrease compared to the same month last year when imports totaled 1 trillion 31 billion rupees.

Concurrently, exports in the same month plummeted by 8.65 percent, amounting to Rs 13.52 billion, as opposed to 14.80 billion rupees in the first month of the previous year.

This dip in both imports and exports has culminated in an overall decrease in foreign trade and a contraction in the trade deficit. Total foreign trade for the month of Shrawan stood at 1 trillion 42 billion 76 crore rupees, which represents a 2.28 percent decline from the corresponding month in the previous year when foreign trade amounted to 1 trillion 46 billion rupees. The trade deficit in Shrawan was recorded at 1 trillion 15 billion 71 billion rupees.

Notably, Nepal's foreign trade continues to be dominated by imports, constituting 90.52 percent of the trade share, while exports account for the remaining 9.48 percent. The share of exports in Shrawan has decreased compared to the previous year.

Decline in Petroleum Imports

The import of petroleum products in Shrawan has witnessed a substantial decline, with imports totaling 21.98 billion rupees this year, down from 25 billion rupees in the same period last year.

On a positive note, the import of iron and steel has shown improvement, amounting to 12.95 billion rupees. In Shrawan 2079, imports in this category were worth 11 billion 23 crores rupees.

In one month, imports of vegetables amounted to 2.5 billion rupees, while medicines worth 2.81 billion were also imported during this period.

The import of vehicles and their parts in Shrawan was valued at 4.29 billion rupees, a slight decrease from the 4.64 billion rupees recorded in the previous year.

Trade with India and China

India continues to be Nepal's largest trading partner, with imports from India reaching 1 billion 24 crores, while exports stood at 8 billion 4 crore rupees. This translates to a trade deficit of 72.76 billion rupees with India in Shrawan alone.

In contrast, imports from China were valued at 21 billion 94 Arba, with only 39 Crores rupees in exports. Data from the Customs Department indicates that Nepal engaged in foreign trade with more than 109 countries in Shrawan.