April 13: Nepal’s exports and imports have both increased during the eight months of the current fiscal year, according to the latest report of Nepal Rastra Bank (NRB). The central bank’s data show overall imports have increased despite taking measures to tighten imports of luxurious goods. Trade deficit has also increased despite increase in exports.

The Current Macroeconomic and Financial Situation Report published by the central bank on Tuesday states that merchandise exports increased 82.9 percent to Rs 147.75 billion during the review period. The country’s exports had increased 7.8 percent during the corresponding period of last fiscal year.

Destination-wise, exports to India and other countries increased 104.2 percent and 29.1 respectively whereas exports to China decreased 11.0 percent.

The report further states that exports of palm oil, soybean oil, oil cakes, polyester yarn and thread, woolen carpets among others, increased whereas exports of cardamom, tea, herbs, wire, copper wire rod, among others, decreased in the review period.

During the eight months of 2021/22, merchandise imports increased 38.6 percent to Rs 1308.73 billion compared to an increase of 2.1 percent a year ago.

Destination-wise, imports from India, China and other countries increased 28.1 percent, 36.7 percent, and 75.4 percent respectively.

Imports of petroleum products, medicine, crude palm oil, crude soybean oil, gold, among others, increased whereas imports of MS billet, cement, chemical fertilizer, pulses, molasses sugar, among others, decreased in the review period.

Based on customs points, exports from Kanchanpur, Mechi, and Nepalgunj Customs Office decreased whereas exports from all the other major customs points increased in the review period.

On the import side, imports from all the major customs points increased in the review period.

Total trade deficit increased 34.5 percent to Rs 1160.99 billion during the eight months of 2021/22. Such a deficit had increased 1.6 percent in the corresponding period of the previous year.

During the eight months of 2021/22, merchandise imports from India by paying convertible foreign currency amounted Rs 147.03 billion. Such amount was Rs 121.36 billion in the same period of the previous year.

As per the Broad Economic Categories (BEC), the intermediate and final consumption goods accounted for 47.3 percent and 52.7 percent of the total exports respectively, whereas the ratio of capital goods in total exports remained negligible at 0.02 percent in the review period.

In the same period of the previous year, the ratio of intermediate, capital and final consumption goods remained 32.3 percent, 0.5 percent and 67.2 percent of total exports respectively.

On the imports side, the share of intermediate goods remained 53.5 percent, capital goods 10.7 percent and final consumption goods remained 35.8 percent in the review period. Such ratios were 53.5 percent, 11.8 percent and 34.7 percent respectively in the same period of the previous year.