Trade deficit with India grows by 28.4 pc: NRB
KATHMANDU, May 1:
In the wake of widening Balance of Payments (BoP) deficit, the total trade deficit has increased by mere 0.4 per cent in the first eight months of the current fiscal year. The trade deficit of Nepal stood at Rs 210.66 billion by the mid-March, according to the recent macroeconomic report published by Nepal Rastra Bank (NRB).
The current account will be under control soon as import and export ratio is improving and the BoP deficit can be tackled once the pledged foreign aid worth Rs 99 billion starts coming in, the Governor assured in the central bank’s 56th anniversary last week.
Though, the trade deficit with India has gone up by 28.4 per cent, the trade deficit with other countries has declined by 31.1 per cent. In the corresponding period last fiscal year, trade deficit with India had grown by 58.6 per cent and with other countries had expanded by 53.3 per cent.
In the review period, merchandise exports that had declined by 8.5 per cent in the last fiscal year’s eighth month, increased by 6.6 per cent to Rs 42.84 billion in the review period.
Though exports to India have increased by 10.8 per cent exports to other countries have dropped by 3.3 per cent. The increase in the exports of zinc sheet, jute goods, thread, M S pipe and plastic utensils accounted for increased export to India while exports to other countries declined due mainly to the decline in the export of readymade garments, handicraft goods, paper and paper products, herbs, silverware and jewelleries. Meanwhile, imports from India grew by 25.1 per cent during the review period while imports from other countries declined by 27.3 per cent. The eighth month also did not escape from the BoP deficit as the deficit stood at Rs 11.3 billion. The BoP deficit was at Rs 19.12 billion in the corresponding period of the last fiscal year.
Source: THT
In the wake of widening Balance of Payments (BoP) deficit, the total trade deficit has increased by mere 0.4 per cent in the first eight months of the current fiscal year. The trade deficit of Nepal stood at Rs 210.66 billion by the mid-March, according to the recent macroeconomic report published by Nepal Rastra Bank (NRB).
The current account will be under control soon as import and export ratio is improving and the BoP deficit can be tackled once the pledged foreign aid worth Rs 99 billion starts coming in, the Governor assured in the central bank’s 56th anniversary last week.
Though, the trade deficit with India has gone up by 28.4 per cent, the trade deficit with other countries has declined by 31.1 per cent. In the corresponding period last fiscal year, trade deficit with India had grown by 58.6 per cent and with other countries had expanded by 53.3 per cent.
In the review period, merchandise exports that had declined by 8.5 per cent in the last fiscal year’s eighth month, increased by 6.6 per cent to Rs 42.84 billion in the review period.
Though exports to India have increased by 10.8 per cent exports to other countries have dropped by 3.3 per cent. The increase in the exports of zinc sheet, jute goods, thread, M S pipe and plastic utensils accounted for increased export to India while exports to other countries declined due mainly to the decline in the export of readymade garments, handicraft goods, paper and paper products, herbs, silverware and jewelleries. Meanwhile, imports from India grew by 25.1 per cent during the review period while imports from other countries declined by 27.3 per cent. The eighth month also did not escape from the BoP deficit as the deficit stood at Rs 11.3 billion. The BoP deficit was at Rs 19.12 billion in the corresponding period of the last fiscal year.
Source: THT
