Merchandise exports fall by 6.1 pc, imports by 4.2 pc in Q1 of FY 2024/25

KATHMANDU: Merchandise exports decreased by 6.1% to Rs 38.38 billion in the first three months of the current fiscal year 2024/25, compared to a decrease of 2.3% in the same period of the previous year, according to the macroeconomic and financial situation report released by the Nepal Rastra Bank (NRB) on Tuesday.

Destination-wise, exports to India, China, and other countries decreased by 5.3%, 24.8%, and 6.6%, respectively. Exports of soybean oil, tea, particle board, shoes and sandals, and oil cakes increased, while exports of zinc sheets, palm oil, cardamom, juice, and readymade garments decreased in the first quarter of the current fiscal year.

Similarly, merchandise imports decreased by 4.2% to Rs 390.75 billion, compared to an increase of 1.7% in the same period of the previous year.

Destination-wise, imports from India, China, and other countries decreased by 3.9%, 1.5%, and 7.9%, respectively. Imports of transport equipment, vehicle parts, edible oil, sponge iron, garlic, and oilseeds increased, whereas imports of gold, petroleum products, electrical equipment, crude palm oil, and MS billets decreased during the review period.

Based on customs points, exports via Biratnagar, Kailali, Krishnanagar, Nepalgunj, and Rasuwa customs offices increased, while exports via all other major customs points decreased until mid-October of the current fiscal year. On the import side, imports through Jaleshwar, Kailali, Rasuwa, and Tatopani customs offices increased, while imports through all other major customs points decreased in the review period.

The total trade deficit decreased by 4.0% to Rs 352.37 billion during the three months, compared to an increase of 2.1% in the corresponding period of the previous year. The export-import ratio decreased to 9.8% in the review period from 10.0% in the corresponding period of the previous year.

During the first three months of 2024/25, merchandise imports from India paid in convertible foreign currency amounted to Rs 44.13 billion, compared to Rs 45.58 billion in the same period of the previous year.