Total Import Figure Stood Rs 16.11 Kharba Last Year; Trade Deficit For FY 2079/80 At Rs. 14.54 Kharba
Nepal witnessed a notable improvement in its trade balance during the fiscal year 2079/80 as trade deficits decreased by 15.45% compared to the previous fiscal year 2078/79. The country's imports experienced a sharp decline, dropping by 16.08% during the same period, mainly attributed to the strict measures imposed by the government. According to data released by the Customs Department, the total imports stood at Rs. 16.11 Kharba in the financial year 2079/80.
Table 1: Foreign Trade Direction:
Based on Annual data of FY 2079/80 (Mid-July 2022 to Mid-July 2023)
While the decrease in imports was significant, the rate of decline in exports surpassed that of imports. Nepal's exports experienced a substantial decrease of 21.44%, presenting a challenging aspect of the trade scenario. Exports accounted for Rs. 1.57 Kharba worth of goods during the same fiscal year.
The disparity between imports and exports resulted in a trade loss amounting to Rs. 14.54 Kharba in FY 2079/80. To provide context, in the financial year 2078/79, Nepal faced a trade deficit of Rs. 17.20 Arba. The import value for that year was Rs. 19.20 Kharba, while exports were recorded at Rs. 2 Kharba.
The overall size of Nepal's foreign trade for FY 2079/80 was estimated to be Rs. 17.68 Kharba, representing a significant decline of 16.58% compared to the previous financial year 2078/79 when the size of foreign trade was Rs. 21.20 Kharba.
Despite the challenging trade climate, the composition of foreign trade reveals that the share of exports in Nepal's foreign trade stood at 8.88%, while the share of imports increased to 91.12%.
TOP 10 EXPORTS FOR THE FISCAL YEAR 2079/80
In the fiscal year 2079/80, Nepal's trade landscape showcased significant changes with notable implications for the country's economy. The top exports for the mentioned fiscal year were led by "Animal or vegetable fats and oils and their cleavage products," which accounted for an impressive value of Rs. 29.44 Arba. This export category played a pivotal role in bolstering Nepal's foreign trade performance and helped to reduce the trade deficit.
Following closely in the export lineup were "Coffee, tea, mate, and spices," contributing Rs. 14.07 Arba, and "Man-made staple fibers," amounting to Rs. 12.33 Arba. These export segments demonstrated resilience in the face of economic challenges and showcased Nepal's capacity to cater to global demands for these products.
TOP 10 IMPORTS FOR THE FISCAL YEAR 2079/80
On the import side, Nepal experienced a decline in merchandise goods imports, which played a key role in limiting the trade deficit. The top imports for the fiscal year 2079/80 were dominated by "Mineral fuels, mineral oils, and products of their distillation," amounting to Rs. 3.53 Kharba. This decrease in imports of mineral fuels and oils indicated the impact of government measures aimed at managing import expenditures.
"Iron and steel" imports followed closely behind, with a value of Rs. 1.40 Kharba. The reduced import figure for this category could be linked to the growth of domestic iron and steel production and exports.
Furthermore, "Electrical machinery and equipment" imports were recorded at Rs. 1.01 Kharba, while "Boilers, machinery, and mechanical appliances" imports accounted for Rs. 1.00 Kharba. The reduced imports of machinery and equipment signaled the challenges faced by industries in the wake of economic constraints during the fiscal year.
Overall, the data for the fiscal year 2079/80 portrayed a shift in Nepal's trade dynamics, with the country making significant strides in reducing the trade deficit. The surge in exports of key products such as animal or vegetable fats, coffee, tea, mate, spices, man-made staple fibers, carpets, and iron and steel products, along with the controlled imports of mineral fuels, iron, steel, and machinery, have played a crucial role in shaping Nepal's foreign trade landscape. As the country moves forward, it becomes essential to capitalize on these strengths while addressing any trade challenges to foster sustained economic growth.
