Foreign trade decreases by Rs 311 billion

Kathmandu / May 22: Foreign trade of the country has decreased by about Rs 311 billion compared to the last fiscal year. According to the Department of Customs, in the 10 months of the current fiscal year (up to April), trade has decreased by Rs 311 billion this year due to a decline in imports and exports. Total foreign trade has decreased by 17.54 percent compared to the corresponding period of last FY.

Imports have declined by 16.78 percent due to the economic recession in the country, the Russia-Ukraine war, etc.

In the 10 months of last year, goods worth Rs 1.64 trillion were imported, but this year, goods worth Rs 1.34 trillion were imported. In the current fiscal year 2079/80 BS, there has been an even greater contraction in commodity exports. Goods worth Rs 130 billion have been exported in 10 months.

This is 24.49 percent less than the previous year. Goods worth Rs 173 billion were exported till April of the previous year. The contraction in both the import and export of goods has also reduced the size of total foreign trade.

Petroleum products topped the list of imported items. The country spent Rs 291 billion for the purchase of fuel. Similarly, iron and steel worth Rs 114 billion were imported. Similarly, vehicles and spare parts worth Rs 41.25 billion were also imported.

Similarly, exports have also decreased by 24.49 percent. In the same period last year, Rs 173 billion worth of goods were exported, but this year goods worth only Rs 130 billion were exported.

The country’s trade deficit reached Rs 124 billion from July to April. Compared to last year, the trade deficit has decreased. During the same period last year, there was a trade deficit of Rs 1.44 trillion. Nepal’s largest trade is with India. In 10 months, goods worth Rs 844 billion have been imported from India, while goods worth Rs 91.14 billion have been exported to India.

Due to the decrease in foreign trade, the revenue collected by the government has also decreased. Imports have increased significantly after the government eased restrictions on imports of some items in December.

Due to the decrease in foreign trade, revenue collection based on customs has also decreased by about Rs 3 billion. In the 10 months of last year, the revenue raised at the import-based customs point was Rs 450 billion, but in these 10 months, only Rs 380 billion has been collected.

Due to the lack of increase in the production of industrial and agricultural goods in the country, Nepal is facing a trade deficit with more than 100 countries including India, China, Indonesia, United Arab Emirates, America, Canada, and other countries.

While the government is saying that it will increase production by industrializing the country, the country’s trade deficit has not decreased as expected. Importing goods that can be produced domestically from abroad has resulted in a trade loss.