Kathmandu, July 5

Nepal’s trade deficit has continued to widen during the current fiscal year.

The country’s trade deficit grew by 13.4 per cent to Rs. 302.75 billion during the first 10 months of the current fiscal year as compared to same period last year.

During the period, the country’s total export grew by 14.5 per cent to Rs. 60.45 billion and the import surged by 13.6 per cent to Rs.363.20 billion, according to a preliminary report of the Trade and Export Promotion Centre (TEPC).

In the first 10 months last year, the country’s trade deficit stood at Rs.267.05 billion, while the total foreign trade reached Rs. 372.65 billion. The share of import and export was Rs.52.80 billion and Rs.319.85 billion, respectively.

The country’s foreign trade posted a marginal growth of 13.7 per cent to Rs.423.65 billion during the period this year as compared to the same period last year.

The contribution of export and import to total trade stood at around 14.3 per cent and 85.7 per cent, respectively.

The ratio of the export and import was 1: 6.0 during the review period, while it was 1:6.1 during the same period last year.

Carpet, readymade garment, textile, iron and steel goods, handicrafts, cardamom, tea, herbal products were the major exportable items during the review period.

During the review period, the export of carpet and readymade garment increased by 22.3 per cent and 8.6 per cent to Rs. 4.84 billion and Rs. 3.59 billion, respectively. Similarly, the export of textile and pashmina also grew by 36.3 per cent and 24.7 per cent to Rs.4.17 billion and Rs.1.81 billion, respectively.

However, the export of lentil decreased by 43.4 per cent to Rs.1.80 billion during the review period. Lentil worth Rs.3.19 billion had been exported during the same period last year.

The export of iron and steel goods, polyester and thread went up to Rs.5.53 billion and Rs.5.36 billion, respectively.

Nepal was able to export cardamom, leather, tea, ginger, herbal products, handicrafts, Nepali hand-made papers worth Rs. 2.92 billion, Rs.580 million, Rs.1.05 billion, Rs. 332 million, Rs.657 million, Rs.290 million and Rs.465 million, respectively, the TEPC report shows.

Similarly, the import of petroleum products, iron and steel products and gold occupied the first, second and third positions out of total importable products during the review period.

The import of petroleum products and iron and steel products increased by 23.9 per cent and 2.2 per cent to Rs. 74.10 billion and Rs.35.54 billion, respectively.

The import of gold also posted a significant growth of 177.7 per cent to Rs.21.50 billion during the review period, while the country imported gold worth Rs. 7.74 billion during the same period last year.

However, the import of vehicular items decreased by 12.9 per cent to Rs. 18.28 billion, TEPC said.

The import of electrical goods, medicines and chemical fertilisers stood at Rs.16.06 billion, Rs.10.26 billion and Rs. 6.39 billion, respectively.

The import of the telecommunication materials decreased by 14.3 per cent to Rs.77.26 billion during the review period.