Exports Surge by 58.2% in First Five Months, Trade Deficit Reaches NPR 649.68 Billion

Nepal’s total merchandise exports increased sharply in the first five months of the current fiscal year 2082/83, rising by 58.2 percent to NPR 116.51 billion, according to data published by Nepal Rastra Bank.

In the same period of the previous fiscal year, export growth stood at just 16.5 percent. By destination, exports to India grew significantly by 82.7 percent, while exports to other countries increased by 5.5 percent. However, exports to China declined sharply by 73.3 percent.

In terms of commodities, exports of soybean oil, cardamom, palm oil, jute-based products, shoes, and slippers recorded growth. On the other hand, exports of zinc sheets, particle boards, tea, woolen carpets, and handicraft items declined during the review period.

During the same period, total merchandise imports increased by 15.8 percent to NPR 766.19 billion. In the corresponding period last year, imports had grown by only 3.0 percent. Country-wise, imports from India, China, and other countries rose by 5.7 percent, 24.6 percent, and 40.8 percent, respectively.

Commodity-wise, imports of crude soybean oil, chemical fertilizers, gold, transport equipment, vehicles and spare parts, and silver increased. However, imports of hot rolled sheets in coil, garlic, edible oil, oilseeds, and pulses declined.

As a result, Nepal’s total merchandise trade deficit widened by 10.5 percent to NPR 649.68 billion in the first five months of fiscal year 2082/83. In the same period last year, the trade deficit had increased by just 1.5 percent. The export–import ratio improved to 15.2 percent, compared to 11.1 percent in the corresponding period of the previous year.

During the review period, merchandise imports worth NPR 69.45 billion were made from India using convertible foreign currency, down from NPR 72.84 billion in the same period last year.

In the export composition, final consumption goods accounted for 69.8 percent, intermediate goods 29.6 percent, and capital goods 0.6 percent of total exports. In the corresponding period of the previous year, these shares stood at 55.0 percent, 44.1 percent, and 0.9 percent, respectively.