Trade deficit soars to Rs 880bn in first six months of current FY

KATHMANDU: Nepal has recorded a huge trade deficit in the first six months of the current fiscal year 2021/22. The total trade deficit increased 46.6% to Rs 880.49 billion, according to the Current Macroeconomic and Financial Situation report based on six months' data ending mid-January, 2021/22 made public by Nepal Rastra Bank (NRB) today. As per the report, noticeable import is the reason behind the soaring trade deficit. The trade loss decreased by 5.8% as compared to the same period last year. The export-import ratio increased to 11.9% in the review period from 9.2% in the corresponding period of the previous year. In these six months, merchandise imports from India by paying convertible foreign currency amounted to Rs 110.91 billion while it was Rs 83.01 billion in the same period last year. Likewise, the exports increased 95.5% to Rs.118.85 billion compared to an increase of 6.1% in the previous year. Similarly, in the review period, capital transfer decreased 20% to Rs.5.48 billion while net foreign direct investment (FDI) increased 48.1% to Rs.11.34 billion. Balance of Payments (BOP) remained at a deficit of Rs.241.23 billion in the review period against a surplus of Rs.124.92 billion. Likewise, remittance inflows decreased 5.5% to Rs.468.45 billion in the review period against an increase of 11.1%. The number of Nepali workers (institutional and individual-new and legalized) taking approval for foreign employment increased significantly to 167,513 in the review period. It had decreased 89.0% in the same period of the previous year. The workers (Renew entry) taking approval for foreign employment increased 298.1% to 130,212 in the review period. It had decreased 75.5% in the previous year. The net transfer decreased 4.9% to Rs.523.01 billion. Such a transfer had increased 8.9% in the previous year. READ ALSO:

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