Merchandise exports fall by 7.1 pc, imports by 2.3 pc in 7 months of current FY 2023/24

KATHMANDU: The merchandise exports have seen a decline of 7.1% to Rs 86.83 billion in the first seven months of current fiscal year 2023/24, a marked improvement from the 29% decrease observed in the same period last year, according to a report by Nepal Rastra Bank (NRB). 

In terms of destinations, exports to India and other countries fell by 11.3% and 2% respectively, while exports to China saw a significant increase of 338.8%. There was an uptick in the exports of items such as zinc sheets, particle boards, juice, ready-made garments, and ginger, while exports of palm oil, soybean oil, cardamom, tea, and woollen carpets saw a downturn.

In the first seven months of the current fiscal year 2023/24, merchandise imports also decreased by 2.3% to Rs 897.94 billion, compared to a decrease of 19.9% a year ago. Imports from India and other countries fell by 2.8% and 23.8% respectively, while imports from China rose by 38.4%. There was an increase in the imports of items such as ready-made garments, transport equipment, vehicle and other vehicle spare parts, aircraft spare parts, electrical equipment, M.S. wire rod, bars, and coils, while imports of crude soybean oil, gold, rice/paddy, petroleum products, and crude palm oil decreased.

From a customs point perspective, exports from Bhairahawa, Dry Port, Jaleshwor, Kanchanpur, Krishnanagar, Mechi, Nepalgunj, Rasuwa, and Tatopani witnessed an increase, while exports from all the other major customs points witnessed a decrease during the first seven months of current fiscal year 2023/24. 

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 during the review period.

The total trade deficit decreased by 1.8% to Rs 811.11 billion during the review period, a significant improvement from the 18.7% decrease in the corresponding period of the previous year. The export-import ratio also decreased to 9.7% in the review period from 10.2% in the corresponding period of the previous year.

During the review period, merchandise imports from India, paid in convertible foreign currency, amounted to Rs 88.18 billion, an increase from Rs 71.78 billion in the same period of the previous year.