KATHMANDU: Nepal’s trade deficit decreased 2.3 percent to Rs 1177.18 billion in the first ten months of the current fiscal year due to the decline in imports and exports.

According to the latest report of Nepal Rastra Bank, such deficit had decreased 15.9 percent in the corresponding period of the previous year.

Unveiling the Current Macroeconomic and Financial Situation Report of Nepal based on the ten months of current fiscal year on Monday, the central bank said that the export-import ratio decreased to 9.7 percent in the review period from 9.8 percent in the corresponding period of the previous year.

The merchandise exports decreased by 3.6 percent to Rs 126.17 billion in the review period compared to a decrease of 24.5 percent in the corresponding period of last fiscal year.    

Destination-wise, exports to India and other countries decreased 5.6 percent and 1.4 percent respectively, whereas exports to China increased 68.1 percent.

According to the report, exports of zinc sheet, particle board, juice, readymade garment, and oil cakes among others increased whereas exports of palm oil, soybean oil, woolen carpet, tea, bran among others decreased.

In the review period, merchandise imports also decreased 2.4 percent to Rs 1303.36 billion compared to a decrease of 16.8 percent a year ago.

Destination-wise, imports from India and other countries decreased 3.4 percent and 20.8 percent respectively while imports from China increased 34.4 percent.

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

Based on customs points, exports from Bhairahawa, Dry Port, Jaleswar, Kanchanpur, Krishnanagar, Mechi, Nepalgunj, Rasuwa and Tatopani increased whereas exports from all the other major customs points decreased in the review period. On the import side, imports from 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.