The country witnessed over four times increase in trade deficit in the four months of current fiscal year. From Rs 26.62 billion deficit in the first month, the trade deficit has gone up to Rs 111.80 billion during the four months, according to central bank.
Merchandise exports rose by 10.7 per cent to Rs 23.69 billion, whereas merchandise imports increased by 11.8 per cent to Rs 135.49 billion, Nepal Rastra Bank’s current macroeconomic report for the first four months — by mid-November — published today revealed.
Trade deficit had gone up by 2.2 per cent during the same period of the last fiscal year. Trade deficit with India increased by 2.1 per cent compared to a growth of 31.9 per cent during the same period of the last fiscal on the contrary trade deficit with other countries increased by 34.1 per cent against to a drop by 31.8 per cent in the same period of the last fiscal year. In the US dollar term, the total trade deficit rose by 8.4 per cent to $1.48 billion compared to a growth of 6.8 per cent during the same period of the last fiscal year.
“The increase in the import growth led to a slight reduction in the export to import ratio to 17.5 per cent in the review period, which stood at 17.7 per cent a year ago,” it added.
The exports had increased by 7.7 per cent to Rs 21.41 billion during the same period of last fiscal year, whereas the imports had risen by 3.1 per cent to Rs 121.17 billion during the same period of last fiscal year.
Exports to India went up by 14.6 per cent compared to an increase of 10.2 per cent during the same period of the last fiscal but exports to other countries increased by four per cent compared to an increase of 3.8 per cent in the same period of last fiscal , it said, attributing exports of zinc sheet, textiles, cardamom, wire and GI pipes to rise in exports to India.
“Similarly, exports to other countries increased mainly due to an increase in export of woollen carpet, pashmina, readymade garments, Nepali paper and paper products and tea,” the report said, adding that in US dollar term such export increased by 0.7 per cent to $110.5 million compared to an increased by 9.1 per cent in the same period of the previous year. Imports from India increased by 4.2 per cent compared to a growth of 27.8 percent during the same period of last fiscal year, whereas imports from other countries increased by 27.9 per cent in contrast to a drop by 26.7 per cent during the same period of the previous year. “In US dollar term such imports increased by 23.8 per cent to $662.7 million compared to a drop by 23.2 per cent in the same period of a fiscal year ago. “The import of petroleum products, readymade garments, agricultural equipments and parts, tyres, tubes and flaps, and sanitary ware increased from India whereas import of gold, crude soybean oil, chemical fertilisers, silver, and other machinery and parts have increased from other countries.
However, the country has recorded the highest level of Balance Of Payment (BoP) surplus ever since 1974-75. Current account and increase in remittance contributed to Rs 46.31 billion BoP surplus in first fourth months of the current fiscal. Similarly, the remittance increased by 34.2 per cent to Rs 103.20 billion.(Source:THT)