February 7: Nepal’s trade deficit decreased by 19.2 percent to Rs 711.86 billion during the six months of the current fiscal year (FY 2022/23), according to the latest report of Nepal Rastra Bank (NRB).

The Current Macroeconomic and Financial Situation Report published by the central bank on Monday revealed that such a deficit had increased 46.6 percent in the corresponding period of the previous fiscal year.

The export-import ratio decreased to 10.2 percent in the review period from 11.9 percent in the corresponding period of the previous year.

Meanwhile, merchandise exports decreased 32.0 percent to Rs 80.81 billion during the first six months of 2022/23 against an increase of 95.5 percent in the same period of the previous year.

Destination-wise, exports to India and China decreased 40.1 percent and 25.2 percent respectively whereas exports to other countries increased 3.6 percent.

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

Similarly, merchandise imports decreased 20.7 percent to Rs 792.67 billion during the review period against an increase of 51.1 percent a year ago.

Destination-wise, imports from India, China and other countries decreased 19.4 percent, 24.6 percent, and 21.4 percent respectively. Imports of petroleum products, sponge iron, chemical fertilizer, gold, other stationeries, among others, increased whereas imports of transport equipment and parts, medicine, MS billet, silver, telecommunication equipment and parts, among others, decreased in the review period.

Based on customs points, exports from customs offices of Bhairahawa, Jaleshwar, Kailali, Krishnanagar, Mechi, Nepalgunj, Rasuwa and Tribhuvan International Airport 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.

During the six months of FY 2022/23, merchandise imports from India by paying convertible foreign currency amounted to Rs 60.56 billion. Such an amount was Rs 110.91 billion in the same period of the previous year.