Exports to Saarc countries up 15.58pc in 2011-12
KATHMANDU, OCT 30 -
Nepal’s exports to Saarc countries increased 15.58 percent in the last fiscal year, according to the Trade and Export Promotion Centre (TEPC). The country’s export earnings from seven SAARC countries rose to Rs 54.37 billion from Rs 47.04 billion.
Pakistan, Bhutan and Bangladesh were the major export destinations for Nepal in the region, according to the TEPC data. These four countries accounted for over 99 percent (Rs 54.26 billion) of Nepal’s total export earnings from the region.
Trade experts attribute this growth mainly to the appreciation of the US dollar. “Besides strong dollar, there are no appropriate reasons for the exports to increase,” said Ratnakar Adhikari, chief executive director of the South Asia Watch on Trade, Economics and Environment (SAWTEE).
India stood as the largest export destination, importing Nepal’s products worth Rs 50.93 billion last year. While exports to Bangladesh stood at Rs 2.57 billion, Bhutan imported Rs 543.83 million worth of Nepali goods and services.
According to TEPC, Nepal’s exports to India, Pakistan and Bhutan increased by 18.82 percent, 58.71 percent and 27.81 percent, respectively, in 2011-12. However, exports to Bangladesh fell by around 26 percent due to the downfall in the exports of lentils, one of Nepal’s major exportable goods. “Decline in production and export of lentils were the main reasons behind declining export earnings from the Bangladesh,” said Adhikari.
According to TEPC, overall exports of lentils declined by Rs 672 million last year.
Iron and steel products, electric transformers and aluminium products were the major goods exported to Bhutan. Adhikari said Nepal has great potential to export transformers to Bhutan as the country has been promoting hydroelectricity production. “Besides, good quality of our products has also helped boost the export of the product,” he said. Exports to Sri Lanka, Maldives and Afghanistan posted multi-fold increment. Exports to Sri Lanka increased by almost 2.5 times to Rs 18.61 million, while exports to Maldives surged to Rs 2 million from Rs 140,073, and that to Afghanistan increased to Rs 97.88 million from Rs 4.39 million. Raw hides, skins and leather, textile and floor covering, medicinal apparatus and coffee, tea and spices were among the major products exported to Sri Lanka last year. Maldives imported mainly beverages, spirit, vinegar and articles of apparel and clothing accessories, soap and artificial waxes. Similarly, goods related to food preparation, fertilisers, textiles and tobacco were among major items exported to Afghanistan.
Although there has been a substantial growth in export earnings from the SAARC countries, Adhikari expressed doubts on its sustainability. “The government should focus on increasing the export potential to achieve sustainable growth in the region,” he said.
Source: The Kathmandu Post
