January 15: Nepal’s imports decreased 20.7 percent in the first five months of the current fiscal year against an increase of 59.5 percent during the corresponding period of last fiscal year.

According to the Current Macroeconomic and Financial Situation Report of Nepal Rastra Bank, imports from India, China and other countries decreased 20.0 percent, 22.6 percent, and 21.4 percent respectively.

Imports of petroleum products, sponge iron, gold, chemical fertilizer, aircraft spare parts, among others, increased whereas imports of transport equipment and parts, MS billet, silver, medicine, crude soybean oil, among others, decreased in the review period.

During the five months of FY 2022/23, merchandise exports decreased 34.6 percent to Rs 67.30 billion against an increase of 105.6 percent in the same period of the previous year, added the NRB report. Destination-wise, exports to India and China decreased 43.7 percent and 35.9 percent respectively whereas exports to other countries increased 7.1 percent.

Exports of zinc sheet, particle board, woolen carpets, cardamom, tea, among others, increased whereas exports of soybean oil, palm oil, oil cakes, textiles, silverware and jewelries, among others, decreased in the review period.

Based on customs points, exports from Dry Port, Jaleshwar, 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 all the major customs points decreased in the review period.

The country’s total trade deficit decreased 18.8 percent to Rs 597.44 billion during the five months of 2022/23. Such a deficit had increased 54.7 percent in the corresponding period of the previous year.

The export-import ratio decreased to 10.1 percent in the review period from 12.3 percent in the corresponding period of the previous year.

As per the Broad Economic Categories (BEC), the intermediate and final consumption goods accounted for 53.4 percent and 46.5 percent of the total exports respectively, whereas the ratio of capital goods in total exports remained negligible at 0.05 percent in the review period.

In the same period of the previous year, the ratio of intermediate, capital and final consumption goods remained 47.1 percent, 0.02 percent and 52.9 percent of total exports respectively.

On the imports side, the share of intermediate goods remained 53.1 percent, capital goods 9.0 percent and final consumption goods remained 38.0 percent in the review period. Such ratios were 53.8 percent, 10.9 percent and 35.4 percent respectively in the same period of the previous year.