April 5: Nepal’s trade deficit has reached Rs 929.61 billion in the first eight months of the current fiscal year despite a 2.5 percent decline in the review period compared to the corresponding period of last fiscal year.

According to the latest report of Nepal Rastra Bank, such a deficit had decreased 17.9 percent in the corresponding period of the previous year. The Current Macroeconoic and Financial Situation Report released by the central bank on Thursday also revealed that the export-import ratio decreased to 9.8 percent in the review period from 9.9 percent in the corresponding period of the previous year.

During the review period, Nepal’s merchandise exports decreased 4.0 percent to Rs 100.62 billion compared to a decrease of 29.1 percent in the same period of the previous year.

Destination-wise, exports to India decreased 7.7 percent whereas exports to China and other countries increased 275.5 percent and 0.3 percent respectively.

Exports of zinc sheet, particle board, juice, readymade garments, polyester and thread among others increased whereas exports of palm oil, soybean oil, cardamom, woolen carpet, bran among others decreased.

In the review period, merchandise imports decreased 2.7 percent to Rs 1030.22 billion compared to a decrease of 19.1 percent a year ago.

Destination-wise, imports from India and other countries decreased 2.8 percent and 22.9 percent respectively while imports from China increased 33.7 percent.

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