Tag: Deficit

  • Analysis of Import and Export Trends in the First Nine Months of Fiscal Year 2080/81

    Analysis of Import and Export Trends in the First Nine Months of Fiscal Year 2080/81


    Nepal’s trade dynamics in the initial nine months of fiscal year 2080/81 reveal alarming patterns, raising concerns about the nation’s economic outlook. The trade deficit, representing the variance between imports and exports, has expanded by approximately 2.75 percent during this period, indicating a growing disparity between import costs and export values, posing significant challenges to Nepal’s economic stability.

    Imports

    Imports in the first nine months of the fiscal year witnessed a noticeable decline of around 2.84 percent, totaling approximately Rs. 11.67 Kharba. In comparison, the corresponding period in the previous year saw imports amounting to goods worth Rs. 12.01 Kharba.

    Key imported commodities included mineral fuels, iron/steel, electrical machinery, mechanical appliances, and vehicles. The surge in these imports reflects shifting consumer demands and evolving industrial needs within the country.

    Exports

    On the contrary, Nepal’s exports amounted to Rs. 1.13 Kharba during the nine-month period, primarily led by sectors like coffee, tea & spices, iron/steel, and man-made staple fibers, which constituted the bulk of export volumes.

    However, exports have witnessed a decline of about 3.66 percent compared to the previous year’s exports valued at Rs. 1.18 Kharba. This decline poses a significant challenge to economic growth and stability, impacting vital indicators such as GDP, exchange rates, inflation, and interest rates.

  • Nepal’s 7-Month Trade Snapshot: Imports Dip 2.31%, Trade Deficit Narrows 1.77%, Exports Down 7.07%

    Nepal’s 7-Month Trade Snapshot: Imports Dip 2.31%, Trade Deficit Narrows 1.77%, Exports Down 7.07%


    In the initial seven months of the current fiscal year, spanning from Shrawan to Magh in the Nepali calendar, Nepal’s imports reached Rs. 8.97 Kharba, indicating a slight decrease of 2.31% compared to the corresponding period in the previous year, where imports totaled Rs. 9.19 Kharba.

    During this period, the trade deficit has also witnessed a reduction of 1.77%, amounting to Rs. 8.11 Kharba in the current fiscal year, as opposed to Rs. 8.25 Kharba recorded in the same timeframe of the previous year.

    Simultaneously, there has been a notable decline in Nepal’s exports, experiencing a 7.07% decrease. The total value of exported goods and services for the first seven months of the current fiscal year amounted to Rs. 86.83 Arba, in contrast to the Rs. 93.43 Arba worth of exports during the equivalent period in the preceding year. These statistics, derived from data released by the Customs Department, highlight the dynamics of Nepal’s trade performance, showcasing a nuanced interplay of import and export figures in the given fiscal timeframe.

  • NRB Governor Discusses Power Export and Hydropower Sector Development with IPPAN

    NRB Governor Discusses Power Export and Hydropower Sector Development with IPPAN


    Maha Prasad Adhikari, the Governor of the Nepal Rastra Bank (NRB), has emphasized that Nepal’s trade deficit could be effectively addressed if the country could export power worth Rs 130 billion annually. In a meeting with the office-bearers of the Independent Power Producers’ Association, Nepal (IPPAN), Governor Adhikari highlighted the potential of power export as a means to reduce the trade deficit.

    Governor Adhikari pledged that the Nepal Rastra Bank is committed to facilitating the development of the hydropower sector in the country. During the meeting, IPPAN President Ganesh Karki proposed a requirement for banks and financial institutions to allocate 20% of their total investments to the energy sector. Governor Adhikari responded by expressing confidence in banks’ ability to invest, even if Nepal were to generate 20,000 megawatts of electricity in the next decade.

    IPPAN, however, stated that they require around Rs 555 billion within five years to develop projects for generating approximately 3,700 megawatts of power. In a 10-year timeframe, this requirement increases to about Rs 2,055 billion, assuming power export agreements with India are considered. The figure rises to over Rs 3,750 billion if an additional 25,000 megawatts of electricity, as per the Energy Decade declaration, were to be produced.

    IPPAN requested that the NRB’s loan provision, which currently allows projects producing over 200 megawatts to receive loans with just a 1% addition to the base interest rate, be extended to all hydropower projects. They also highlighted banks’ reluctance to invest further in hydropower due to NRB directives, which prevent the distribution of interest income during the construction phase as dividends.

    Furthermore, IPPAN called for the continued sharing of bonuses generated during the construction phase and urged the government to facilitate the introduction of new financial instruments like green bonds, climate bonds, or sovereign bonds from international markets. They sought the NRB’s support for refinancing in clean energy due to high interest rates imposed by financial institutions in the energy sector.

    In response, the NRB governor acknowledged that matters related to bonds fall under the Finance Ministry’s jurisdiction but expressed the central government’s willingness to facilitate such initiatives. IPPAN also urged the NRB to introduce provisions allowing banks and financial institutions to invest in energy production as capital and requested eased rules and provisions related to investment, bonuses, and withdrawal of investments for international investors to achieve their ambitious goal of generating 25,000 megawatts of electricity and importing 15,000 megawatts in the next decade.

    The IPPAN delegation included Vice President Mohan Kumar Dangi and former President Shailendra Guragain, among others, while the NRB meeting included Deputy Governor Bam Bahadur Mishra, executive directors Dr. Gunakar Bhatta, and Dev Kumar Dhakal.

  • “Nepal’s Trade Deficit Narrows to Rs. 14.54 Kharba in FY 2079/80 with Rs. 16.11 Kharba Total Imports”

    “Nepal’s Trade Deficit Narrows to Rs. 14.54 Kharba in FY 2079/80 with Rs. 16.11 Kharba Total Imports”


     

    Nepal saw a significant improvement in its trade balance in fiscal year 2079/80 as trade deficits decreased by 15.45% compared to the previous year 2078/79. This improvement was mainly due to a sharp decline in imports, which dropped by 16.08% during the same period. The government’s strict measures played a crucial role in reducing imports, and according to the Customs Department’s data, the total imports stood at Rs. 16.11 Kharba in the financial year 2079/80.

     

  • Nepal’s Trade Deficit Reaches Rs 1337 Billion in 11 Months

    Nepal’s Trade Deficit Reaches Rs 1337 Billion in 11 Months


     

    In the 11 months of the fiscal year 2080/081 BS, Nepal’s trade deficit has reached Rs 1337.39 billion. According to the data released by the Department of Customs, imports amounted to approximately Rs 1481 billion, while exports stood at Rs 143.58 billion until the end of the month Jestha. However, it is important to note that the volume of foreign trade in the country has decreased in the current fiscal year compared to the previous fiscal year.

     

  • Nepal’s Trade Deficit Stands at Rs. 12.04 Kharba for First Ten Months of Fiscal Year

    Nepal’s Trade Deficit Stands at Rs. 12.04 Kharba for First Ten Months of Fiscal Year


    Nepal’s trade deficit for the first ten months of the current fiscal year has remained at Rs. 12.04 Kharba, according to the recently released Nepal Trade Statistics by the Department of Customs. This represents a decrease of 15.85% compared to the trade gap of Rs. 14.31 Kharba during the same period in the previous fiscal year. Both imports and exports have also witnessed a decline of 16.78% and 24.49% respectively when compared to the corresponding period of FY 2078/79.

    During the first ten months of FY 2079/80, Nepal’s imports amounted to Rs. 13.35 Kharba, with petroleum products being the top imported commodity, followed by crude soya bean oil and crude palm oil. On the other hand, the country’s exports reached Rs. 1.3 Kharba, experiencing a significant drop compared to the previous year’s figures.

    It is noteworthy that Nepal’s trade deficit has narrowed in the review period, indicating some improvement in the overall trade balance. However, the decline in both import and export values suggests challenges in the external trade sector, which require attention and strategic measures to promote trade growth.

    Please note that the provided data is based on the first ten months (Shrawan-Baishakh) of FY 2079/80, which corresponds to the period from mid-July 2022 to mid-May 2023.