KATHMANDU, JULY 25
The trade deficit of the country decreased by Rs 265 billion in the fiscal year 2022-23, primarily due to reduction in imports.
According to Nepal Trade Statistics unveiled by the Department of Customs (DoC), the trade deficit stood at Rs 1.45 trillion, marking a 15.45 per cent decrease compared to the previous fiscal year 2021-22 when it had stood at Rs 1.72 trillion.
During the review period, imports fell by 16.08 per cent to Rs 1.61 trillion compared to Rs 1.92 trillion in the corresponding period of fiscal 2021-22. The top imported commodities were petroleum products, followed by crude soybean oil and crude palm oil.
However, Nepal's exports experienced a more significant decline during the same review period. The country's exports plunged by 21.44 per cent to Rs 157 billion against Rs 200 billion in the same period of the previous fiscal year. The primary export commodities were woollen carpets, refined soybean oil and refined palm oil.
The imports-to-exports ratio in the review period stood at 10.26, indicating that Nepal imported $10.31 worth of goods for every dollar's worth of goods exported. This was a deterioration from the ratio of 9.60 recorded in the corresponding period of the previous fiscal year.
It is worth noting that Nepal continues to have the highest trade deficit with its neighbouring countries, India and China.
Nepal exported goods worth Rs 106 billion to India while importing merchandise worth Rs 1.02 trillion from the southern neighbour, resulting in a deficit of Rs 921 billion. Similarly, exports to China amounted to Rs 1.76 billion, while imports from the northern neighbour totalled Rs 222 billion.
A version of this article appears in the print on July 26, 2023, of The Himalayan Times.
