Majority of Nepal's trade within SAARC region
KATHMANDU:
Nepal is largely dependent on SAARC member countries for export and import of merchandise goods, as 67.04 per cent of the country’s trade is conducted in South Asian countries. Of the total trade in fiscal 2013-14, which stood at Rs 814.14 billion, Nepal’s trade with South Asian nations stood at Rs 548.78 billion.
Data obtained from the Trade and Export Promotion Centre (TEPC) shows that the country’s import from SAARC countries has been gradually increasing each passing year. However, the country’s export to the SAARC member countries has been gradually dropping.
The share of import in Nepal’s total trade with SAARC countries increased by 10 percentage points in the last five years. Share of import in Nepal’s total trade with SAARC countries in 2009-10 was 57.4 per cent, which increased to 67.2 per cent in last fiscal 2013-14.
Nepal, however, is largely dependent on southern neighbour India for import and export of goods. Among the SAARC nations, Nepal’s import from India comprised 99.4 per cent of the total import from SAARC nations in the last fiscal. Nepal imported goods worth Rs 485.47 billion in the last fiscal from SAARC nations, of which, goods worth Rs 482.35 billion were imported from the southern neighbour.
Export to India covers almost 94 per cent of its total export to SAARC countries. Nepal exported goods worth Rs 63.31 billion in the last fiscal, of which export to India was worth Rs 59.46 billion.
On the other hand, Nepal is gradually losing trade surplus with South Asian trading partners as export has been decreasing with regional trading partners. According to TEPC, Nepal is in trade surplus with Bangladesh, Afghanistan and Maldives within SAARC.
The country’s trade surplus with Bangladesh was Rs 2.6 billion in fiscal 2009-10, which fell to Rs 411.84 million in the last fiscal. Bangladesh is another major regional trading partner after India and major exports to Bangladesh are lentils, wheat bran, vegetables and juices.
In recent years, Nepal’s export to Afghanistan has been increasing. Export growth to Afghanistan increased by 150.6 per cent in 2013-14 compared to the corresponding period of the previous fiscal. Export to Afghanistan was worth Rs 606.66 million in 2012-13, which increased to Rs 1.52 billion in the last fiscal. Major export items to Afghanistan are tobacco products, water gas generators and readymade garments.
Nepal is in trade deficit of Rs 253.67 million with Bhutan and major imports from Bhutan are gypsum, coal, juices, and tableware and kitchenware of wood, according to TEPC.
The country’s trade deficit with Sri Lanka and Pakistan increased significantly in fiscal 2013-14, compared to the previous fiscal. Trade deficit with Sri Lanka was worth Rs 685.59 million in 2013-14 against Rs 153.86 million in the previous fiscal. Nepal’s major imports from Sri Lanka are unused postage, stamps, banknotes, cheque forms, pepper, live poultry, weighing machines and copper scrap.
Similarly, trade deficit with Pakistan stood at Rs 263.22 million in fiscal 2013-14 against Rs 204.7 million the previous fiscal. Nepal imports dates, pet bottles, plants and parts of plants and electro-medical instruments and appliances from Pakistan, according to TEPC.
Source: THT
