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Nepal’s trade deficit soars to Rs 811.11 billion in 7 months

Khabarhub

February 22, 2024

3 MIN READ

Nepal’s trade deficit soars to Rs 811.11 billion in 7 months

Department of Customs/File Photo

KATHMANDU: The country experienced a ballooning trade deficit of Rs 811.11 billion while engaging in foreign trade worth Rs 984.77 billion in the first seven months of the current fiscal year 2080/81 BS.

According to the foreign trade data for the reporting period, released by the Department of Customs, imports totaling around Rs 897.94 billion were made, while exports amounted to Rs 86.83 billion as of mid-February (end of the Nepali month Magh).

In comparison to the first seven months of the last fiscal year, imports have decreased by 2.31%, and exports have dropped by 7.07%.

The Department reports that the trade deficit has decreased by 1.77% as overall trade dropped by 2.75% compared to the previous year.

India remains the largest trading partner for Nepal, with imports from India amounting to Rs 554.75 billion, while only Rs 58.72 billion was exported.

Consequently, Nepal has suffered a trade deficit of Rs 496.36 billion with India alone in the seven months of the current fiscal year.

Similarly, Nepal has experienced a trade deficit of Rs 171.23 billion with China, the second-largest trading country.

Imports from China reached Rs 173.91 billion until mid-February, with exports worth Rs 1.85 billion.

The United Arab Emirates ranks third in the list of countries with a high trade deficit for Nepal.

During the seven months of the current fiscal year, imports from the UAE amounted to Rs 15.69 billion, and exports were worth Rs 1.58 billion, resulting in a trade deficit of Rs 14.11 billion.

Nepal has the highest trade surplus with the United States among countries engaged in foreign trade. In the reporting period, imports from the US amounted to Rs 9.17 billion, while exports were Rs 9.54 billion, resulting in a trade surplus of Rs 364.7 million.

As reported, Nepal has a trade deficit with Denmark, Norway, Afghanistan, and the Maldives, among other countries.

The highest imports during the reporting period were petroleum products, with diesel amounting to Rs 77.41 billion, petrol Rs 38.82 billion, and LP Gas Rs 30.31 billion.

Additionally, iron-related materials worth Rs 22.66 billion and smartphones worth Rs 17.38 billion were imported in the reporting period.

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