KATHMANDU: Nepal has recorded a trade deficit of Rs 861.38 billion in the foreign trade, which totaled Rs 1,115.79 billion in the first seven months of the current fiscal year.
According to data released by the Department of Customs, which covers imports and exports up to the end of Magh month, Nepal’s imports amounted to Rs 988.58 billion, while exports stood at Rs 127.20 billion.
The data revealed a 46.5% increase in exports compared to the same period last year, while imports grew by 10.09%.
As a result, total foreign trade increased by 13.3%. Despite this growth, the trade deficit widened by 6.2% compared to the previous year.
The total foreign trade is composed of 88.6% imports and 11.4% exports. The largest trade deficit, amounting to Rs 498.34 billion, was recorded with Nepal’s main trading partner, India.
During this period, Nepal imported goods worth Rs 596.35 billion from India, while exports to India totaled Rs 98.75 billion.
Nepal is also facing trade losses with its northern neighbor, China, reporting a trade deficit of Rs 19.44 billion. Imports from China amounted to Rs 192.45 billion, while exports were just Rs 2 billion.
Other countries where Nepal is facing a trade deficit include Argentina, the UAE, and Australia.
However, Nepal enjoys a positive trade balance with Afghanistan, exporting Rs 494.5 million to Afghanistan, while imports from the country totaled only Rs 12.4 million.
The Department of Customs also noted that a significant portion of Nepal’s import expenditure is spent on petroleum products. Among exports, soybean oil is the leading item.
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