Lately, Nepal's imports have increased at a very fast pace. Given the growing need for commodities for development and consumption in the future and the slow growth in domestic production, this is likely to increase further. The possibility of expanding exports in the near future is limited. Due to this, there is a need for good planning and management of imports.

However, the purpose of such management should not be to control per capita imports but to harness the limited foreign exchange resources available for import financing in line with the national objective of development, equity and satisfaction of basic needs.

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The purpose of the import strategy should be to plan, manage and review imports in a way that increases GDP and thus enhances the economy's capacity to support high future imports. The first part of the strategy should be to plan imports to increase domestic production. Import-substituting industries should be encouraged where raw materials are available; low-weight industries, such as cement, should be encouraged; and more efforts should be made to promote export-oriented industries on the basis of competitiveness in external markets.

Appropriate macroeconomic policies for the development of such industries are essential for the success of such efforts.

Such policies include realistic exchange rates, monetary policies designed to help exports and maintain price stability, and more realistic and simplified lending policies. The country's trade deficit has reached Rs 568 billion in just four months. According to the Customs Department, the country's trade deficit has increased at a high rate due to the increase in imports of even domestically produced goods. Imports increased by 61.57 per cent compared to the same period of the previous year.

Exports of goods worth Rs 40.20 billion in the first four months of last year have now increased to Rs 82.12 billion, a 104 per cent increase.

But due to the small size of exports, their effect on the trade deficit is not seen. The export increase is largely due to the export of refined crude palm and soybean oil. Imports might need to be reduced by force to balance trade and foreign exchange reserves.

Nepal is heavily dependent on imports for development, construction materials and consumer goods.

Production, infrastructure and marketing are the key requirements to strengthen the supply side of goods exported from Nepal. The government should bring a strong "product development programme" in every state from production to export market level to increase production. The slogan 'Export for Development' of the past seems to have lost its relevance now.

Prosperity is at the top of the agenda, but money-making exports are given less priority in terms of cash incentives and tariff reduction.

Why has there been such a slow increase in exports in recent times? Have the government and other bodies set goals? Has the government been able to give proper incentives to achieve the export target, if any? Is the new policy enough to boost exports? What measures should the government take to improve exports? Is NTIS enough? Who monitors what? Is the work of the Trade and Export Promotion Centre effective and result-oriented and does it have adequate resources in terms of manpower and budget? What is the system of import management? The real enemy is within us, although critics have blamed a number of external factors, such as the declining trend in world trade, the impact of COV- ID-19, increasing competition and the formation of regional blocs for the slow growth of exports. Inadequate infrastructure and bureaucratic hurdles, along with "flip-flop" policies, are major obstacles to development.

It would not be an exaggeration to say that the negative and sluggish attitude of Nepali diplomatic missions abroad is a major obstacle on the way of enhancing the export of Nepali products.

The sharp decline in the net invisible income, reduction in concessional loans and some increase in wholesale imports have contributed to this process.

Thus, the increase in imports related to production of non-essential consumer goods has added to the pressure on imports. Discretionary action is required to curb further growth in foreign debt, especially of short maturity and with difficult conditions, and to accelerate the use of aid.

The emphasis on liberalisation should also shift towards improving the technology and efficiency of intermediate and capital goods industries, which in all respects are necessary to reduce the cost of producing indigenous products, increase the competitiveness of indigenous industries on a wider scale than at present, and lay the groundwork for greater self-reliance.

As Nepal has entered the Multilateral and Regional Trade Arrangements (RTA), the BBIN is expected to include a special reference to Nepal in its recommended strategy for rapid export growth. There needs to be adequate investment in high-concentration infrastructure of the export manufacturing industry. In the case of Nepal, success of the export trade cannot be imagined unless we commercialise the agricultural sector. Therefore, making sincere efforts for the development, consolidation and promotion of agricultural production and trade is the reality, obligation, hope, demand and precondition for Nepal.

Lately, the business of the service sector has also been increasing. Tourism has the potential to make a significant contribution to foreign exchange earnings.

Conditions are favourable for the rapid expansion of tourism after COVID-19. The tourism industry does not face protectionist barriers. The future expansion of tourism should be achieved mainly from the private sector. The state can contribute to the protection of the interests of the industry, consumers and the environment by planning broad development strategies, providing the necessary infrastructure.