December 27: The data of the last five months show exports have been gradually improving. The volume of export exceeded Rs 100 billion in the last fiscal year. Exports have already exceeded Rs 100 billion in the last five months of the current fiscal year.

If the volume of export increases at the same rate, exports will be around Rs 250 billion this fiscal year, says Chandra Ghimire, former secretary at the Ministry of Industry, Commerce and Supplies. Ghimire warned that the volume of imports have also grown excessively. 

“The increase in our income source can be seen through the market demand, which would be difficult to control through imports,” says Ghimire. 

According to Ghimire, there is a high demand for four types of goods in the market which include consumer goods, luxury items, industrial raw materials and goods for capital investment. Ghimire argues that the increase in demand for luxury items is not healthy for our economy. The increase in imports is also linked with rise in international prices of petroleum products, he further said.

“Materials brought for the capital investment have also contributed to the trade deficit. Since it will help to recoup the investment in the future, it is not something to be worried about.”