November 17: Trade deficit of Nepal decreased by 13.1 percent in the first three months of the current fiscal year (FY 2022/23) compared to the corresponding period of last fiscal year. According to Nepal Rastra Bank, the total trade deficit of the country currently stands at Rs 359.18 billion.

Such a deficit had increased 58.3 percent in the corresponding period of the previous year, states the Current Macroeconomic and Financial Situation Report published by the central bank on Wednesday.

According to the report, the export-import ratio decreased to 10.4 percent in the review period from 13.6 percent in the corresponding period of the previous year.

During the three months of FY 2022/23, merchandise imports from India by paying convertible foreign currency amounted Rs 34.59 billion. Such amount was Rs 54.17 billion in the same period of the previous year.

During the review period, merchandise exports decreased by 35.7 percent to Rs 41.82 billion against an increase of 109.5 percent in the same period of the previous year.

Destination-wise, exports to India and China decreased 45.0 percent and 35.0 percent respectively whereas exports to other countries increased 5.0 percent.

Exports of zinc sheet, particle board, woolen carpets, readymade garments, tea, among others, increased whereas exports of soybean oil, palm oil, oil cakes, jute goods, silverware and jewelries, among others, decreased in the review period, the report further stated.

Similarly, merchandise imports decreased by 16.2 percent to Rs 401 billion in the review period against an increase of 63.7 percent a year ago.

Destination-wise, imports from India, China and other countries decreased 14.8 percent, 16.7 percent, and 19.2 percent respectively.

Imports of petroleum products, chemical fertilizer, sponge iron, medicine, coal, among others, increased whereas imports of transport equipment and spare parts, silver, telecommunication equipment and parts, crude soybean oil, MS wire rod, bars, coils and others, among others, decreased in the review period.

Based on customs points, exports from Dry Port, Jaleshwor, Kailali, Krishnanagar, Mechi and Tribhuwan Airport Customs Offices increased whereas exports from all the other major customs points decreased in the review period. On the import side, imports from Dry Port, Jaleshwor and Tatopani Customs Offices increased whereas imports from all the other major customs points decreased in the review period.