Trade deficit of Nepal improving; Imports fell by 4.24% and exports increased by 26.97%

Tue, Jan 7, 2020 12:18 PM on Economy, Latest,

The scare of Balance of Payments (BOP) deficit has led to a series of steps by the government to decrease imports and increase the exports. As a result, the imports have been declining and exports have been increasing.

SN Trade Indicators FY 2075/76  (First five Months) FY 2076/77  (First five Months) Change (%)
1 Imports ( `000) 606996594 581257119.1 -4.24
2 Exports ( `000) 37501899.5 47616834.86 26.97
3 Trade Deficit ( `000)                                  569,494,694                                   533,640,284 -6.30
4 Total  Foreign Trade ( `000) 644498493.5 628873953.9 -2.42
5 Imports/Exports Ratio 16.18575598 12.20696673 -24.58
6 Exports Share to Total Trade (%) 5.818772252 7.571761331 30.13
7 Imports Share to Total Trade (%)                                           94.18                                             92.43 -1.86

Continuing the trend, in the fifth month of FY 2076/77 the import has declined by 4.24% and the exports have increased by 26.97 percent. Thus, the trade deficit has declined by 6.30% in comparison to the first five months of the last fiscal year.

The total imports for the first five months stood at Rs 5.81 kharba down from 6.06 kharba last year. The most imported items of Nepal are Diesel with an import value of Rs 38.50 arba followed by Iron and steel, Petrol and LP Gas. Just sixth on the list is Crude palm oil with import value of Rs 9.94 arba.

Similarly, the total exports has increased to Rs 47.61 arba from Rs 37.50 arba last year in the review period. Our number one export product, once again, is palm oil. Nepal has exported palm oil worth Rs 11.52 arba in the first five months. Second on the list is Carpets with an export value of only Rs 3.22 arba.

Likewise, the total trade deficit has declined from Rs 5.69 kharba to Rs 5.33 kharba in the first five months of FY 2076/77. As always, our highest trade deficit still lies with India at value of Rs 3.17 kharba. This is 55.7% of the total trade deficit of Nepal. Previously this percentage used to be around 65% of the total trade deficit. Following India, our trade deficit lies with China, Indonesia, UAE and United States.