Trade deficit slumps by over 9% as imports fall

By Ajay Chhetri, Kathmandu, Sept 28: A huge gap in the trade deficit has continued despite a surprise fall in imports in the current fiscal year (FY).

The trade deficit recorded in the first two months has seen a slump by 9.45 per cent in comparison to the same period of the first two months.

According to the Department of Customs, the trade deficit in the first two months of the current FY accounted Rs 244.9 billion which fell from Rs 270.4 billion accounted in the same period of the previous FY.

The causes of the fall in the trade deficit are the fall in imports and export value over this period. The imports recorded Rs 273.5 billion in the first two months which is lower than Rs 314.5 billion recorded in the same period of the previous FY.

The data showed that Nepal imports mostly depend on India, the United States, Germany, the United Kingdom, and Turkey.

Similarly, the export also declined by 34.88 per cent in comparison to previous FY. The data showed that export in the first two months recorded Rs 28.6 billion which is lower than Rs 44 billion recorded in the same period of the previous FY.

The data showed that, India is the main destination of its exports. Following India, Nepal delivers its consignment to the United States, Germany, the United Kingdom, and Turkey.

Meanwhile, the data showed both the export and imports slumped in comparison to the previous FY. According to the Spokesperson of the Department of Customs, Punya Prasad Khadka, government restrictions on the import of luxurious items resulted in the decline in the imports. He further added that it will affect the collection of revenue.