Nepal’s trade deficit increased by 56.83 percent in the first four months of the current fiscal year when compared to the same time in the previous fiscal year, despite a significant increase in export revenues during the period under review.
According to figures kept by the Department of Customs (DoC), the country’s negative balance of trade increased from Rs 362.29 billion to Rs 568.17 billion between the middle of July and the middle of November. Nepal earned Rs 82.12 billion during the period under review, more than double the amount earned during the same period the previous year.
With an increase in export volume, Nepal’s proportion of export earnings in overall trade grew to 11.21 percent from 9.08 percent, reflecting an increase in export earnings. However, because of a huge increase in import expenses, the economy was unable to reap the benefits of the increase in exports.
According to the Department of Commerce, import expenses climbed by 61.57 percent over the period, reaching Rs 650.29 billion. Nepal experienced a trade imbalance of Rs 319 billion with India, the country’s main trading partner and the country’s largest trading partner.