Kathmandu, July 4:

In the first 10 months of the financial year 2007-08, the quantum of exports declined whereas that of imports increased significantly. As a result the trade deficit widened.

Total exports fell by 1.2 per cent compared to a decline of 0.3 per cent during the corresponding period the previous year. “Of the total exports, export to India declined by 7.5 per cent in the review period compared to a decline of one per cent in the same period last fiscal year,” states a Nepal Rastra Bank (NRB) report.

On the other hand, exports to other countries grew by 13 per cent compared to a decline of 3.1 per cent in the comparable period the previous year.

Decline in exports to India was on account of the fall in exports of vegetable ghee, textiles, chemicals, resin and toothpaste.

Exports to other countries went up largely due to the increase in the exports of pulses, Nepali paper and paper products, herbs, wheat, packing materials of paper, cigarettes, electric

wire and stationery, states the central bank report.

Total imports surged by 21 per cent in the first 10 months this fiscal year in comparison to a rise of 10.5 per cent in the corresponding period the previous fiscal year. While imports from India soared by 25.4 per cent in the review period compared to a growth of 11.4 per cent in the corresponding period of last fiscal year, imports from other countries rose by 13.8 per cent compared to a rise of nine per cent the previous fiscal year.

Consequently, the total trade deficit expanded by 31.6 per cent in the review period compared to a growth of 16.5 per cent a year earlier, according to the report.

In the first 10 months, the remittances sent by Nepalis working abroad increased by 35.3 per cent to Rs 108.64 billion compared to an increase of 3.1 per cent in the previous fiscal year.

However, the overall Balance of Payment (BoP) posted a surplus of Rs 19.88 billion in the review period in comparison to a surplus of Rs 6.97 billion in the corresponding period the previous fiscal year mainly because of upsurge in travel receipts, remittances and capital transfer.

The current account has posted a surplus of Rs 4.63 billion in the review period compared

to a surplus of Rs 5.04 billion in the corresponding period the previous fiscal year, the NRB report states.