Banking News – Nepal’s trade deficit increased by 26 percent to reach Rs 3 kharb 24 arab 93 crore in the first two months of the current fiscal year 2083/84. The current macroeconomic and financial situation report up to Bhadau published by Nepal Rastra Bank shows this.

According to the report, both exports and imports increased in the country’s foreign trade during the review period. Total merchandise exports increased by 61.9 percent to reach Rs 76 arab 59 crore. However, since the volume of imports is much larger compared to exports, the trade deficit has increased. During the review period, total merchandise imports increased by 31.6 percent to reach Rs 4 kharb 1 arab 52 crore. The significant increase in imports shows that the trade deficit could not decrease even though exports increased.

Significant Increase in Exports to India

According to Nepal Rastra Bank, exports to India, China, and other countries increased by 70.6 percent, 137.6 percent, and 22.7 percent respectively. Exports of mainly soybean oil, polyester yarn, palm oil, and particle board increased. However, exports of lentils, processed leather, and Ayurvedic medicines decreased.

Similarly, imports from India, China, and other countries increased by 27.4 percent, 17.2 percent, and 56.6 percent respectively. Petroleum products, chemical fertilizer, crude soybean oil, and vehicles were the main imported items. During this period, imports of gold and paddy/rice decreased.