Trade deficit increases in the current fiscal year; Increasing import & decreasing export results in increasing deficit by 22%

Nepal’s trade loss has been increasing year after year. In this current fiscal year Nepal has already been waging 9.16 kharba trade deficits in the 10 months’ period. The trade loss has increased by 22.80% as compared to the previous years’ loss.

Import form 93.7% of the country’s total foreign trade while export only forms 6.30% of the total trade amount. The import of the country has also increased by 29.70% as compared to the last year.

Increasing Import

Petroleum products worth Rs 1.34 kharba has been imported which is an increment of 34.40%. Similarly Iron and steel based metals worth Rs 1.10 kharba has been imported till date which is an increment by 31.10%.

Electronics and Medicine worth Rs 25.48 arba and Rs 22.25 arba have been imported respectively. Similarly, Gold worth Rs 25.33 arba and Silver worth Rs 10.18 arba have been imported in the current fiscal year.

Nepal has imported Petroleum products, Iron and steel based metals and vehicles from India while Telecommunication accessories, electrical appliances and agricultural products from China.

In the current year, the import from India has increased by 23.20% while the import from China has increased by 19.80%. However, import from Japan, France and United Arab Emirates has decreased.

Decreasing Export

One of the main exportable product of the country i.e. Carpets have also recorded decrease in the export. Export of carpets has decreased by 7.20% and export of Pashmina has decreased by 10%. Juice and Footwear export has also decreased by 14% and 10% respectively. However, ready-made clothes’ export has increased by 9.6%.

India still remains the top exporter as the export has increased by 6.60% as compared to the previous year. Goods exported to America have decreased by 7.43%. China has increased its trade with Nepal as the trade with China has increased by 74%.