Merchandise exports fall by 4.0 pc, imports by 2.7 pc in 8 months of current FY 2023/24

KATHMANDU: The merchandise exports have seen a decline of 4.0% to Rs 100.62 billion in the first seven months of current fiscal year 2023/24, a marked improvement from the 29.1% decrease observed in the same period last year, according to a report by Nepal Rastra Bank (NRB). 

In terms of destinations, exports to India fell by 7.7%, while exports to China and other countries saw a increase of 275.5% and 0.3% respectively. There was an uptick in the exports of items such as zinc sheets, particle boards, juice, ready-made garments, polyester and thread, while exports of palm oil, soybean oil, cardamom, and woolen carpets among others, saw a downturn.

In the first eight months of the current fiscal year 2023/24, merchandise imports also decreased by 2.7% to Rs 1030.22 billion, compared to a decrease of 19.1% a year ago. Imports from India and other countries fell by 2.8% and 22.9% 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 and textiles among others, while imports of crude soybean oil, gold, petroleum products, crude palm oil, rice/paddy among others, decreased.

From a customs point perspective, exports from Bhairahawa, Dry Port, Jaleshwor, Kanchanpur, Krishnanagar, Mechi, Rasuwa, and Tatopani witnessed an increase, while exports from all the other major customs points witnessed a decrease during the first eight 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 2.5% to Rs 929.61 billion during the review period, a significant improvement from the 17.9% decrease in the corresponding period of the previous year. The export-import ratio also decreased to 9.8% in the review period from 9.9% in the corresponding period of the previous year.

During the review period, merchandise imports from India, paid in convertible foreign currency, amounted to Rs 98.29 billion, an increase from Rs 85.12 billion in the same period of the previous year.