Import to export ratio narrows down

By TRN Online, Kathmandu, July 25: The import to export ratio has mildly narrowed down in the fiscal year (FY) 2021/22 in comparison to FY 2020/21 as the size of the export edged up.

According to the annual data for 2021/22 released by the Department of Customs, the ratio between imports to export narrowed down to 9.60 in FY 2021/22 from 10.91 recorded in FY 2020/21.

The ratio which is narrowed down by (-12.1 per cent) ushered a sigh of relief from the existing stress being exerted in the external sector due to the whopping trade deficit.

In the wake of rising stress on the balance of payment (BoP), a significant jump in the export and the ban imposed on imports of luxurious items seems to have helped to narrow down the ratio.

The data revealed that the imports rose by 24.72 per cent in the FY 2021/22 while the exports rose conspicuously by 41.74 per cent.

The data showed the proportion of export to total trade went up while the proportion of imports shrunk.  The share of export to the total trade rose by 12.6 per cent in the FY 2021/22 while in the case to import to total trade, it declined by (-1.13 per cent).