February 6: Nepal’s trade deficit decreased 2.6 percent to Rs 693.20 billion in the first six months of the current fiscal year, according to the latest report of Nepal Rastra Bank.

The Current Macroeconomic and Financial Situation Report published by Nepal Rastra Ban on Tuesday states that the trade deficit had decreased 19.2 percent in the corresponding period of the previous year.

During the review period this year, merchandise exports decreased 7.2 percent to Rs 74.97 billion compared to a decrease of 32 percent in the same period of the previous year.

Destination-wise, exports to India decreased 12.8 percent whereas exports to China and other countries increased 370.9 percent and 1.3 percent respectively.

Exports of zinc sheet, particle board, juice, readymade garments, ginger among others increased whereas exports of palm oil, soybean oil, tea, woolen carpet, rosin, among others decreased.

Similarly, Nepal’s merchandise imports decreased 3.1 percent to Rs 768.17 billion in the review period compared to a decrease of 20.7 percent a year ago.

Destination-wise, imports from India and other countries decreased 2.4 percent and 25.7 percent respectively while imports from China increased 34 percent.

Imports of readymade garments, electrical equipment, MS wire rod, bars, and coils, textiles, transport equipment, vehicle and spare parts, among others increased whereas imports of gold, crude soybean oil, crude palm oil, rice/paddy, petroleum products, among others decreased.

Based on customs points, exports from Bhairahawa, Birgunj Dry Port, Jaleshwar, Kanchanpur, Krishnanagar, Mechi, Nepalgunj, Rasuwa, Tatopani customs and Tribhuwan International Airport Customs Office increased whereas exports from all the other major customs points decreased in the review period.

On the import side, imports from Bhairahawa, Birgunj Dry Port, Jaleshwar, Kanchanpur, Krishnanagar, Nepalgunj, Rasuwa and Tatopani customs offices increased whereas imports from all the other major customs points decreased in the review period.

The export-import ratio declined to 9.8 percent in the review period from 10.2 percent in the corresponding period of the previous year.