March 11: Nepal’s trade deficit decreased 1.8 percent to Rs 811.11 billion in the first seven months of the current fiscal year due to a decline in exports as well as imports, according to the latest report of Nepal Rastra Bank.

The Current Macroeconomic and Financial Situation Report of Nepal released by the central bank on Sunday states that the trade deficit had decreased 18.7 percent in the corresponding period of the previous year.

The export-import ratio decreased to 9.7 percent in the review period from 10.2 percent in the corresponding period of the previous year.

During the review period, merchandise exports decreased 7.1 percent to Rs 86.83 billion compared to a decrease of 29 percent in the same period of the previous year.

Destination-wise, exports to India and other countries decreased 11.3 percent and 2 percent whereas exports to China increased 338.8 percent. Exports of zinc sheet, particle board, juice, readymade garments, ginger among others increased whereas exports of palm oil, soybean oil, cardamom, tea, woolen carpet, among others decreased.

In the review period, merchandise imports decreased 2.3 percent to Rs 897.94 billion compared to a decrease of 19.9 percent a year ago.

Destination-wise, imports from India and other countries decreased 2.8 percent and 23.8 percent respectively while imports from China increased 38.4 percent. Imports of readymade garments, transport equipment, vehicle and other vehicle spare parts, aircraft spare parts, electrical equipment, MS wire rod, bars, and coils, among others increased whereas imports of crude soybean oil, gold, rice/paddy, petroleum products, crude palm oil, among others decreased.