Per day trade deficit Rs 1.69 billion in an average
The country is witnessing trade deficit of Rs 1.69 billion per day in an average.
Nepal recorded Rs 618.47 billion trade deficit in the last fiscal year due to increased imports but slow exports growth, according to the central bank.
The county imported merchandise goods worth Rs 708.76 billion – up by 27.3 per cent compared to a fiscal year ago – whereas exported only Rs 90.29 billion worth, the latest macroeconomic report of the central bank revealed, adding that the country has imported Rs 12.7 worth of merchandise goods last fiscal for every rupee of goods exported. "The export-import ratio was, though, relatively better than that of a fiscal year ago, when the country had imported merchandise goods worth Rs 13.8 for every rupee of export made."
The trade deficit gap is equivalent to 32 per cent of the estimated gross domestic product (GDP) of Rs 1.93 trillion of the last fiscal year 2013-14.
However, the total export receipt of Rs 90.29 billion is not enough to pay – Rs 133.16 billion – the import of single petroleum products. The imports of petroleum products surged by 23.22 per cent to Rs 133.16 billion that is almost 19 per cent of the total imports.
Likewise, The trade deficit with India increased to Rs 413.31 billion in the last fiscal year 2013-14, the report revealed, adding that the imports from India soared by 28.8 per cent to Rs 472.73 billion and imports from other countries jumped by 24.4 per cent to Rs 236.03 billion. "Nepal exported Rs 59.42 billion to India in last fiscal year, whereas exports to other countries stood at Rs 30.87 billion."
Despite widening trade gap, the current account remained in surplus of Rs 89.85 billion in the last fiscal year – thanks to increased remittance inflow – compared to a surplus of Rs 57.06 billion a fiscal year ago in 2012-13.
Apart from substantial increase in remittance inflow, travel income and foreign grants also helped push the current account to surplus that has helped Balance of Payment (BoP) record surplus of Rs 127.13 billion.
The country witnessed remittance inflow of 25 per cent more to Rs 543.29 billion, travel income jumped by 35.6 per cent to Rs 46.37 billion and foreign cash grant surged by 51 per cent to Rs 36.94 billion in the last fiscal year, the report added.