KATHMANDU: Nepal has been bearing a trade deficit from six out of eight South Asian Association for Regional Corporation (SAARC) countries.
According to a report unveiled by the Department of Customs, Nepal has been experiencing a trade deficit with all six SAARC countries except the Maldives and Afghanistan.
The range of trade deficit with India, Pakistan, Bangladesh, Sri Lanka and Bhutan is considerably high.
In the last fiscal year 2019/20, Nepal made profits of Rs 190 million in the exports and imports with the Maldives and Rs 1,475,000 with Afghanistan, said the report.
According to the report, Nepal exported veterinary vaccines worth Rs 1,686,000 to Afghanistan and imported goods worth only Rs 211,000.
Similarly, Nepal exported goods worth Rs 21.9 million to the Maldives in the last fiscal year. Nepal imported goods including paints, garments and clothing.
Nepal suffered a trade deficit of Rs 995.5 million with Bhutan last year. According to the report, Nepal imported goods worth Rs 122 million to Bhutan and while its export volume is put at only Rs 117.5 million.
Apart from Bhutan, Nepal is facing trade deficit with Bangladesh, Sri Lanka, Pakistan, and India.
The volume of goods to be exported to Bangladesh is gradually dwindling while the amount of goods being imported from Bangladesh is increasing day by day, resulting in a huge trade deficit for Nepal.
Experts say Nepal is facing the trade deficit due to the government’s failure to focus on production-orientated economy.
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