Export revenues swell due to stronger dollar

KATHMANDU, NOV 28 -

Nepal’s top export products readymade garments, woollen carpets and pashmina recorded double-digit growths in the first quarter. Traders have attributed the jump in earnings to an appreciation of the US dollar against the Nepali rupee.

According to Nepal Rastra Bank, exports of readymade garments surged 31.2 percent to Rs 1.19 billion. Similarly, woollen carpets rose 24.5 percent to Rs 2.16 billion, and pashmina exports soared a whopping 47.1 percent to Rs 720.4 million in the first three months of the fiscal year.

Trade expert Bijendra Man Shakya said the depreciation of the domestic currency was the main reason behind the increase in export earnings during the period. “There has been no significant reasons to help boost exports in recent times,” he said.

Similarly, Udaya Raj Pandey, president of the Garment Association of Nepal, said the stronger greenback and a slight growth in shipments by established garment exporters could have helped push up exports. “A number of exporters who have been doing good business have been able to get slightly larger orders for their products,” he added.

Pandey added that there had been no significant orders from abroad for Nepali products. “Importers are in a wait and watch mode regarding the political changes that will take place following the Constituent Assembly election.”

Meanwhile, carpet exporters have attributed the growth in their business to increased orders from European countries and newly emerging export destinations like China, the United Arab Emirates and Canada. “In particular, demand from China for Nepali carpets has surged in recent days,” said GK Joshi, proprietor of Joshi Carpet. However, they were unable to fulfil the orders on time due to labour shortages and other problems, he added.

Pushpa Man Shrestha, president of the Nepal Pashmina Industries’ Association, said the surge in export earnings was mainly due to the stronger US dollar. “Although import orders for pashmina products from Europe have increased marginally, the appreciation of the dollar was the main reason behind the higher figures,” he added. Shrestha said that greater publicity was needed to promote Nepali products in the international market.

Apart from the growth in exports of garments, carpets and pashmina, total export earnings during the first quarter also increased 11.28 percent to Rs 23.07 billion. Meanwhile, imports swelled at a similar rate during the review period, growing 11.26 percent to Rs 151.85 billion. Gold imports plunged 49.6 percent to Rs 3.56 billion while petroleum, the country’s largest import, climbed 14.9 percent. The country’s trade deficit increased to Rs 128.78 billion from Rs 115.74 billion during the review period.

Source: The Kathmandu Post