June 9: Nepal’s trade deficit decreased by 15.9 percent in the first ten months of the current fiscal year compared to the corresponding period of last fiscal year. This has been attributed to the decline in imports and exports after the government adopted strict policies and also due to the liquidity problems in the banking sector.

During the review period, the country’s trade deficit stood at Rs 1204.42 billion, according to the latest report of Nepal Rastra Bank (NRB). The Current Macroeconomic and Financial Situation Report released by the central bank on Friday states that such a deficit had increased 24.9 percent in the corresponding period of the previous year.

During the ten months of FY 2022/23, merchandise exports decreased 24.5 percent and was recorded at Rs 130.90 billion against an increase of 59.8 percent in the same period of the previous year. Destination-wise, exports to India decreased 33.6 percent whereas exports to China and other countries increased 100.6 percent and 8.2 percent respectively.

According to the NRB report, 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.

Similarly, during the ten months of FY 2022/23, merchandise imports decreased 16.8 percent and stood at Rs 1335.32 billion against an increase of 28.0 percent a year ago. Destination-wise, imports from India, China and other countries decreased 15.1 percent, 21.0 percent, and 18.6 percent respectively. Imports of chemical fertilizer, sponge iron, gold, petroleum products, paper, among others, increased whereas imports of transport equipment and parts, MS billet, medicine, other machinery and parts, telecommunication equipment and parts, among others, decreased in the review period.

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