By Ajay Chhetri, Kathmandu, Jan 23: Trade deficit has increased by 46.64 per cent during the first half of the current fiscal year (FY) in comparison to the same period of the previous FY.

The first six month’s foreign trade statistics (FTS) released by the Customs Department recorded the trade deficit of Rs 880.4 billion up from Rs 660.4 billion recorded in the same period of the previous FY. 

Despite the rise in exports, the trade deficit significantly widened. The widened trade deficit is specifically driven by the massive amount of imports in comparison to exports. According to the FTS, the export in the current FY remained hardly 11.8 per cent of the imports.

Further, the imports sprung up by 51.13 per cent over the past six months in comparison to the previous FY. The imports recorded Rs 999.3 billion in the current FY up from Rs 661.2 billion in the same period of the previous FY.

Nonetheless, the exports also conspicuously rose by 95.48 per cent in the first six months of the current FY in comparison to the same period of the previous FY. The export rose to Rs 118.5 billion during six months up from Rs 60.7 billion recorded in the same period of the previous FY.

As the imports rose, its contribution for government revenue went up by 37.27 per cent in the current FY. The revenue from the imports of six months rose to Rs 257.6 billion up from Rs 187.6 billion recorded in the same period of the previous FY.

Information officer of the Customs Department, Punya Vikarm Khadka informed that import of fuel, the raw material of palm oil, soyabean oil, mobile phone, M.S. Billet rose the amount of import. Similarly, he added that refined palm oil, refined soyabean oil, synthetic yarn, and carpet have significantly contributed to the rise of the current FY exports. He said that though imports rose, they will contribute a significant amount to the government revenue.