Nepal sees trade deficit of Rs 811.11bn in first 7 months of current FY
KATHMANDU: Nepal has seen a trade deficit of Rs 811.11 billion, with a total foreign trade of Rs 984.77 billion in the first seven months of the current fiscal year 2023/24.
According to the Department of Customs, imports amounted to around Rs 897.94 billion, while exports were recorded at Rs 86.83 billion as of mid-February (End of Nepali month Magh).
Compared to the first seven months of the previous 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%, with overall trade dropping by 2.75% compared to last year.
India is Nepal's largest trading partner, with imports from India amounting to Rs 554.75 billion and exports at Rs 58.72 billion. This results in a trade deficit of Rs 496.36 billion with India alone in the seven months of the current fiscal year.
Nepal also has a trade deficit of Rs 171.23 billion with China, its second-largest trading partner. Goods worth Rs 173.91 billion were imported from China until mid-February, with exports worth Rs 1.85 billion.
The United Arab Emirates ranks third on the list of countries with which Nepal has a high trade deficit. During the seven months of the current fiscal year, imports from the UAE were worth Rs 15.69 billion and exports were worth Rs 1.58 billion, resulting in a trade deficit of Rs 14.11 billion.
Among the countries with which Nepal trades, it has the highest trade surplus with the United States. 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.
Nepal also has trade deficits with Denmark, Norway, Afghanistan, and the Maldives, among other countries.
The highest import during the reporting period was petroleum products. In the first seven months, diesel worth Rs 77.41 billion, petrol worth Rs 38.82 billion, and liquefied petroleum gas (LPG) worth Rs 30.31 billion were imported. Additionally, iron-related materials worth Rs 22.66 billion and smartphones worth Rs 17.38 billion were imported during the reporting period.
