May 10: Nepal’s trade deficit decreased 17.1 percent in the first nine months of the current fiscal year (FY 2022/23) owing to a decline in imports. During the review period, Nepal’s total trade deficit, however, stood at Rs 1083.23 billion, according to the latest report published by Nepal Rastra Bank (NRB) on Wednesday.

The Current Macroeconomic and Financial Situation Report of NRB states that such a deficit had increased 28.5 percent in the corresponding period of the previous year. The export-import ratio decreased to 9.8 percent in the review period from 10.9 percent in the corresponding period of the previous year.

During the nine months of FY 2022/23, merchandise imports decreased 18.1 percent to Rs 1201.51 billion against an increase of 32.0 percent a year ago.

Destination-wise, imports from India, China and other countries decreased 16.4 percent, 23.0 percent, and 19.4 percent respectively.

Imports of chemical fertilizer, sponge iron, petroleum products, gold, paper, among others, increased whereas imports of transport equipment and parts, medicine, MS billet, telecommunication equipment and parts, other machinery and parts, among others, decreased in the review period.

Similarly, merchandise exports also decreased by 26.3 percent to Rs 118.28 billion during the nine months of FY 2022/23 against an increase of 69.4 percent in the same period of the previous year. Destination-wise, exports to India decreased 35.1 percent whereas exports to China and other countries increased 2.2 percent and 8.1 percent respectively.

Exports of zinc sheet, particle board, cardamom, woolen carpets, readymade garments, among others, increased whereas exports of soybean oil, palm oil, oil cakes, textiles, jute goods, among others, decreased in the review period.

Based on customs points, exports from Bhairahawa, Dry Port, Kailali, Krishnanagar, Mechi, Nepalgunj, Rasuwa and Tribhuwan Airport customs offices increased whereas exports from all 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 nine months of FY 2022/23, merchandise imports from India by paying convertible foreign currency amounted to Rs 101.67 billion. Such amount was Rs 167.53 billion in the same period of the previous year.

As per the Broad Economic Categories (BEC), the intermediate and final consumption goods accounted for 55.0 percent and 44.3 percent of the total exports respectively, whereas the ratio of capital goods in total exports remained negligible at 0.6 percent in the review period.

In the same period of the previous year, the ratio of intermediate, capital and final consumption goods remained 47.2 percent, 0.02 percent and 52.7 percent of total exports respectively.

On the imports side, the share of intermediate goods remained 53.3 percent, capital goods 8.3 percent and final consumption goods remained 38.3 percent in the review period. Such ratios were 53.2 percent, 10.5 percent and 36.3 percent respectively in the same period of the previous year