KATHMANDU: The merchandise exports decreased 7.7% to Rs 50.57 billion during the first four months of current fiscal year 2023/24, according to the macroeconomic and financial situation report released by Nepal Rastra Bank (NRB) on Thursday. The merchandise exports decreased 33.3% in the same period of the previous year.
Destination-wise, exports to India decreased 14.5% while exports to China and other countries increased 307.9% and 4.7% respectively. Exports of zinc sheet, particle board, juice, readymade garments, polyester yarn and thread, among others increased while exports of palm oil, soyabean oil, tea, woollen carpet, rosin, among others decreased.
In the review period until mid-November, merchandise imports decreased 3.8% to Rs 512.50 billion compared to a decrease of 18.1% a year ago.
Source: NRB
Destination-wise, imports from India and other countries decreased 2.5% and 27.7% respectively while imports from China increased 34.4%. Imports of readymade garments, MS wire rod, bars, and coils, electrical equipment, textiles, and aircraft spare parts, among others increased whereas imports of crude soyabean oil, gold, petroleum products, crude palm oil, M.S. billet, among others decreased.
Based on customs points, exports from Bhairahawa, Dry Port, Jaleswor, Kanchanpur, Krishnanagar, Mechi, Rasuwa, Tatopani and Tribhuwan Airport Customs Offices increased whereas exports from all the other major customs points decreased in the review period. On the import side, imports from Bhairahawa, Dry Port, Jaleshwor, Kanchanpur, Krishnanagar, Nepalgunj, Rasuwa and Tatopani Customs Offices increased while imports from all the other major customs points decreased in the review period.
The total trade deficit decreased 3.3% to Rs 461.94 billion during the review period. Such a deficit had decreased 15.9% in the corresponding period of the previous year. The export-import ratio decreased to 9.9% in the review period from 10.3% in the corresponding period of the previous year.
During the review period, merchandise imports from India against payment in convertible foreign currency amounted to Rs 53.84 billion. Such an amount was Rs 42.69 billion in the same period of the previous year.
Composition of Foreign Trade
As per the Broad Economic Categories (BEC), the intermediate and final consumption goods accounted for 55.6% and 44.1% of the total exports respectively, while the ratio of capital goods in total exports remained negligible at 0.3% in the review period. In the same period of the previous year, the ratio of intermediate, capital and final consumption goods remained 54.6%, 0.02% and 45.4% of total exports respectively.
On the imports side, the share of intermediate goods remained 49.2%, capital goods 8.8% and final consumption goods 42.1% in the review period. Such ratios were 53.0%, 8.3% and 38.7% respectively in the same period of the previous year. Export-Import Price Index
The y-o-y unit value export price index, based on customs data, increased 4.0% whereas the import price index decreased 3.5%. As a result, the terms of trade (ToT) index increased 7.7% in the review period.
