Nepal suffers trade deficit with 133 countries out of 169 trading partners

Kathmandu, Aug. 5: Nepal has conducted foreign trade with more than 169 countries of the world. Nepal suffers trade deficit with most of the countries having trade relations.

According to an annual trade statistics of the fiscal year 2023/24 made public by the Department of Customs, the country has trade deficit with 133 countries out of 169 trade partners during the last fiscal year.

The trade deficit remained high due to the inability to increase the production and productivity of export goods.

However, Nepal enjoyed trade surplus only with 36 of its 169 trade partner countries during the review period.

The country suffered heavy trade deficits with its major trading partners, resulting in a total trade deficit of Rs. 1,440.60 billion during the last fiscal year.

However, the country's trade deficit has decreased marginally due to fall in both import and export during the review period. 

In the meantime, Nepal’s exports reduced by 3.03 per cent to Rs. 152.38 billion during the review period while import also declined by 1.16 per cent to Rs. 1,592.98 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. 893.50 billion while with China it reached Rs. 296.18 billion.

During the review period, Nepal imported goods worth Rs. 996.68 billion from India while goods only worth Rs. 103.17 billion were exported to India. 

India is the largest trading partner of Nepal with more than 60 per cent of the country’s trade undertaken with the southern neighbour.

In the last fiscal year, statistics showed that more than 67 per cent of Nepal’s exports have been directed to India and about 63 per cent of Nepal’s total imports have been from India.

Similarly, goods worth Rs. 298.77 billion were imported while goods only worth Rs. 2.58 billion were exported to China.

Nepal has the third biggest trade deficit with United Arab Emirates at Rs. 26.50 billion

The county has trade deficit with Ukraine at Rs. 18.8 billion, with Malaysia at Rs. 17.67 billion, with Australia at Rs. 13.57 billion, with Argentina at Rs. 12.37 billion, with France at Rs. 11.72 billion, with Saudi Arabia at Rs. 11.43 billion and with Indonesia at Rs. 10.36 billion.

Similarly, Nepal had a trade deficit with Thailand at Rs. 8.56 billion, with Republic of Korea at Rs. 8.38 billion, with Singapore at Rs. 6.62 billion, with Oman at Rs. 5.40 billion, with Canada at Rs. 7.58 billion and with Viet Nam at Rs. 5.22 billion.

The country incurred a trade deficit with Bangladesh at Rs. 3.67 billion, with Brunei Darussalam at Rs. 3.46 billion, with United States of America at Rs. 2.16 billion and with Turkey at Rs. 3.17 billion in the last fiscal year. 

Highest trade surplus with Denmark 

According to the report, the country had trade surplus with Afghanistan, Antigua and Barbuda, Aruba, Bahamas, Bermuda, Bosnia and Herzegovina, Cambodia, Cayman Islands, Chad, Colombia, Croatia, Denmark, Dominican Republic, Fiji, French Southern Territories, Georgia, Iceland, Kyrgyzstan and Latvia.

Likewise, Nepal had trade surplus with Lebanon, Liberia, Maldives, Malta, Mauritania, Mauritius, Montenegro, New Caledonia, Norway, Panama, Papua New Guinea, Senegal, Seychelles, Sierra Leone, Sudan, Tajikistan and Uruguay.

But the surplus amount has remained too low to offset the ever-widening trade deficit of the country.

Nepal has made the higher trade surplus with Denmark followed by Afghanistan. 

In the last fiscal year, Nepal had made a trade surplus of Rs. 467 million with Denmark and Rs. 466 million with Afghanistan.

During the period, the country exported goods worth Rs. 822 million to Denmark and imported goods worth Rs. 354 million. 

Nepal exported goods worth Rs. 493 million to Afghanistan while imported goods worth Rs. 27 million during the review period. 

During the review period, the country made a trade surplus with Norway at Rs. 153.3 million, with Mauritania at Rs. 30.5 million, with Latvia at Rs. 25.7 million and with Iceland at Rs. 25.2 million.