Trade deficit improves as imports decline in first quarter

By A Staff Reporter,Kathmandu, Oct. 25: With the decline in imports, there has been seen improvement in trade deficit during the first three months of the current fiscal year 2024/25.

According to the trade statistics report based on first three months of the current fiscal year made public by the Department of Customs, the country's trade deficit has decreased by 3.96 per cent to Rs. 352.37 billion.  

The county had faced a trade deficit of Rs. 366.88 billion during the first three months of the last fiscal year.

Imports have decreased by 4.17 per cent during the first three months of the current fiscal year. 

Goods worth Rs. 390.75 billion were imported in the review period. The country imported goods worth Rs. 407.75 billion in the same period last fiscal year.

Not only imports, but also exports have decreased. 

Goods worth Rs. 38.37 billion have been exported in three months of the current fiscal year. Goods worth Rs. 40.87 billion were exported in the first three months of the last fiscal year. 

The export decreased by 6.11 per cent during the review period as compared to same period last fiscal year.

Decline in both exports and imports have contributed to a fall in foreign trade during the review period.

The country's foreign trade has decreased by 4.35 per cent to Rs. 429.13 billion during the first three months of the current fiscal year.

During the review period, the ratio of import and export stood at 1:10.18 while it was 1:9.98 during the same period in fiscal year 2023/24.  

The share of exports in the total trade has dropped by 1.84 per cent during the first three months of the current fiscal year as compared to same period last fiscal year.

During the review period, the share of exports and imports in the total trade was 8.94 and 91.06 per cent respectively. 

In the first three months of the last fiscal year, the contribution of exports and imports to the total foreign trade was 9.11 and 90.89 per cent respectively.

During the review period, the country exported soybean oil worth Rs. 945 million, palm oil worth Rs. 2.84 million and sunflower worth Rs. 349 million. 

During the review period, yarn worth Rs. 3.25 billion, carpet worth Rs. 3.1 million, tea and coffee worth Rs. 1.86 billion and cardamom worth Rs. 1.26 billion were exported.

Meanwhile, crude soybean oil worth Rs. 1.21 billion, crude palm oil worth Rs. 1.62 billion and sunflower oil worth Rs. 7.28 billion have been imported during the review period.

In the first three months of the current fiscal year, petrol worth Rs. 16.62 billion, diesel worth Rs. 22.15 billion, kerosene worth Rs. 243 million, aviation fuel worth Rs. 4.59 billion and liquefied petroleum gas worth Rs. 14 billion have been imported. 

Similarly, the country has imported maize worth Rs. 2 billion, rice and paddy worth Rs. 4.60 billion and wheat worth Rs. 94,000 during the review period. 

The country has imported electric vehicles, including three wheelers around worth Rs. 6.4 billion during the review period. 

In the first three months, around 2,518 four-wheeler electric vehicles worth Rs. 6.11 billion and 2,635 three-wheeler electric vehicles worth Rs. 263 million have been imported.