KATHMANDU, OCTOBER 30
The government's decision to give continuity to the ban on import of certain non-essential items limited the country's trade deficit to Rs 359.18 billion in the first three months (mid-July to mid-October) of the current fiscal year 2022-23.
According to Nepal Trade Statistics unveiled by the Department of Customs (DoC) today, the country's total trade gap narrowed by 13.13 per cent compared to Rs 413.47 billion in the corresponding period of last fiscal year.
Issuing a notice on Nepal Gazette on October 14, the Ministry of Industry, Commerce, and Supplies had extended the restriction on the import of certain 'luxury' items including all kinds of readymade beverages, vehicles (jeep, car and vans, with exception of ambulances and hearse), two-wheelers (above 150 cc) and mobile phone sets (above $300) till December 15 in a bid to prop up the country's depleting foreign exchange reserves.
As a result, the country's imports fell 16.20 per cent to nearly Rs 401 billion in the review period compared to Rs 478.52 billion in the corresponding period of fiscal 2021- 22. Petroleum products were the top import commodity, followed by crude soyabean oil and crude palm oil.
But at the same time, Nepal's exports saw a bigger drop in the review period, as per DoC. The country's exports plunged by 35.71 per cent to Rs 41.82 billion in the review month against Rs 65.05 billion recorded in the same period of previous fiscal. The top export commodities were refined soyabean oil, refined palm oil and woollen carpets.
DoC officials did not respond to requests for comment on the reason for the drop in exports.
The imports-exports ratio in the review period surged by 30.35 per cent to 9.59. This means Nepal imported $9.59 worth of goods for every dollar's worth of goods exported.
It was a deterioration from the ratio of 7.36 recorded in corresponding period of previous fiscal. Nepal continues to have the highest trade deficit with its neighbours - India and China.
Nepal exported goods worth Rs 28.97 billion to India, while importing merchandise worth a staggering Rs 244.774 billion from the southern neighbour, resulting in a deficit of Rs 215.802 billion.
Similarly, imports from China amounted to Rs 56.04 billion, while exports to the northern neighbour was merely Rs 164.243 million.
This caused trade deficit of Rs 55.879 billion with China.
Comparative figures
Particulars 2021-22 2022-23
Import Rs 478.52bn Rs 401bn
Export Rs 65.05bn Rs 41.82bn
Trade deficit Rs 413.47bn Rs 359.18bn
Data of first three months of fiscal year; Source: DoC
A version of this article appears in the print on October 31, 2022 of The Himalayan Times.
