Global pandemic led Decline in Foreign Trade and Customs Revenue in FY 2076/77

Tue, Jul 28, 2020 11:21 AM on Economy, Featured,

Foreign trade has declined in FY 2076/77 due to the impact of the global pandemic, Covid-19.

Although the foreign trade deficit seems to have improved due to the decline in imports, the pandemic and the lockdown that followed have seriously affected the overall revenue collection.

Even though the Customs Department had expected a surge in revenue collection by 30% in the fiscal year 2076/ 77, the overall revenue collection actually declined because of the economic effects caused by the Coronavirus. According to the Customs Department, total revenue declined by Rs. 56 Arba compared to the fiscal year 2075/76. The total revenue generated in the fiscal year 2076/ 77 was Rs. 2 Kharba 98 Arba. Before this fiscal year, Nepal had seen increasing revenue with each fiscal year.

According to the report, imports have declined by 15.63% and exports by 0.98%. The Customs Department has cited the Covid-19 pandemic and the lockdown thereafter to control it as the primary cause of the decline in revenue. Data also shows that foreign trade has declined by 44% since Chaitra itself after the nationwide lockdown was implemented.

SN Trade Indicators FY 2075/76 (12 Months) FY 2076/77 (12 Months) Change (%)
1 Imports (Rs.in `000) 1418535343 1196799053 -15.63
2 Exports (Rs.in `000) 97109521.02 97709105.18 0.62
3 Trade Deficit (Rs.in `000) 1321425822 1099089948 -16.83
4 Total  Foreign Trade (Rs.in `000) 1515644864 1294508158 -14.59
5 Imports/Exports Ratio 14.60758253 12.24859291 -16.15
6 Exports Share to Total Trade (%) 6.407142156 7.547971372 17.81
7 Imports Share to Total Trade (%) 93.59285784 92.45202863 -1.22