Country witnesses trade deficit of Rs 1,177bn in 10 months of current FY

KATHMANDU: The country has incurred a trade deficit of Rs 1,177 billion as of the end of Baisakh (mid-May) in the current fiscal year. Imports totalled Rs 1,303 billion, while exports were limited to just Rs 126 billion, according to the Department of Customs.

In the first 10 months of the current fiscal year, the country conducted foreign trade transactions worth Rs 1,429 billion, marking a decline of 2.50% compared to the same period in the previous fiscal year. Moreover, imports decreased by 2.39%, and exports fell by 3.61% during the same period.

During the review period, Nepal incurred a trade deficit of Rs 729 billion with India. Goods worth Rs 815 billion were imported from India, while exports from Nepal to India amounted to a mere Rs 86 billion.

Similarly, the second-largest foreign trade deficit was recorded with neighbouring China, totalling Rs 238 billion. Over 10 months, China exported goods worth Rs 240 billion to Nepal and imported goods worth only Rs 22.74 billion from Nepal.

As of mid-May, the largest import was petroleum products, including petrol worth Rs 115.67 billion, diesel worth Rs 56.80 billion, and liquefied petroleum gas (LPG) worth Rs 46 billion. Additionally, Nepal imported mobile phones worth Rs 24 billion during the same period.

Nepal's highest export was carpets, valued at Rs 8.79 billion, followed by cardamom worth Rs 6.91 billion, iron worth Rs 5.52 billion, and palm oil worth Rs 5.60 billion.