Nepal’s trade surplus only with 29 countries out of 156 trading partners

Kathmandu, Feb. 25: Nepal has conducted foreign trade with more than 156 countries of the world. Nepal suffers deficits with most countries it has bilateral trade relations.

According to trade statistics of the Department of Customs, Nepal enjoyed trade surplus only with 29 countries of its 156 trade partners during the first seven months of the current fiscal year 2023/24

The country suffered heavy trade deficits with its major trading partners, resulting in a total trade deficit of Rs. 811.11 billion during the first seven months of the current fiscal year. 

The trade deficit has remained high due to the inability to increase the production and productivity of export goods. However, the country's trade deficit has decreased due to fall in both import and export during the review period as compared to the same period last year. 

In the meantime, Nepal’s exports also dropped by 7.07 per cent to Rs. 86.83 billion during the review period while imports also dropped to Rs. 897.94 billion.

Highest trade surplus with United States of Rs. 364 million

According to the report, the country has trade surplus with Afghanistan, Antigua and Barbuda, Aruba, Bahamas, Bermuda, Chad, Colombia, Croatia, Denmark, Dominica and Fiji.

Likewise, Nepal has trade surplus with Georgia, Iceland, Kyrgyzstan, Latvia, Liberia, Maldives, Malta, Mauritania, Mauritius, New Caledonia, Norway, Panama, Senegal, Seychelles, Sierra Leone, Sudan, United States and Uruguay. But the surplus amount has remained too low to contain the widening trade deficit of the country.

Nepal has made higher trade surplus with the United States followed by Denmark. In the first seven months of the current fiscal year, Nepal has made a trade surplus of Rs. 364 million with the United States and Rs. 278 million with Denmark.

During this period, Nepal exported goods worth Rs. 9.54 billion to the United States and imported goods worth Rs. 9.17 billion. Nepal exported goods worth Rs. 539 million to Denmark while imported goods worth Rs. 261 million during the review period. 

Similarly, Nepal has made a trade surplus with Norway of Rs. 78 million, with Afghanistan of Rs. 33 million, with New Caledonia of Rs. 24 million, with Maldives of Rs. 23 million, with Latvia of Rs. 17 million and with Mauritius of Rs. 10 million.

The country made a trade surplus with Malta at Rs. 6 million, with Croatia at Rs. 5 million, with Chad at Rs. 4 million and with Mauritania at Rs. 4 million during the review period.

Trade imbalance with India Rs. 496 billion

During the review period, Nepal’s highest amount of trade deficit is with its neighbours, India and China, the two biggest trading partners. Nepal’s trade deficit with India reached Rs. 496.03 billion while with China it reached Rs. 171.23 billion.

During the review period, Nepal exported goods worth Rs. 58.72 billion to India while goods worth Rs. 554.74 billion were imported from India. Similarly, goods worth Rs. 173.09 billion were imported while goods only worth Rs. 1.85 billion were exported to China. Nepal has the third biggest trade deficit with United Arab Emirates at Rs.  14.11 billion.

The county has trade deficit with Ukraine at Rs. 11.71 billion, with Malaysia at Rs. 10.28 billion, with Australia at Rs. 7.71 billion, with Indonesia at Rs. 7.31 billion, with Argentina at Rs. 7.01 billion with Thailand at Rs. 5.06 billion and with United Kingdom at Rs. 3.35 billion, according to the Department.

Similarly, Nepal has a trade deficit with Viet Nam at Rs. 3.37 billion, with Turkey at Rs. 2.13 billion, Taiwan, Province of China at Rs. 3.96 billion, with South Africa at Rs. 1.99 billion, with Belgium at Rs. 2.73 billion and with Singapore at Rs. 3.28 billion during the first seven months of the current fiscal year.

The country has a trade deficit with Saudi Arabia at Rs. 3.60 billion, with Russian Federation at Rs. 2.43 billion, with Oman at Rs. 5.19 billion, with New Zealand at Rs. 1.10 billion, with Morocco at Rs. 2.45 billion, with South Korea at Rs. 3.08 billion, with France at Rs. 7.16 billion, with Canada at Rs. 3.25 billion, with Brazil at Rs.  2.36 billion, with Japan at Rs. 3.5 billion and with Bangladesh at Rs. 2.35 billion.