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