Trade deficit up 6.3% to Rs 180.18b

REPUBLICA KATHMANDU, Dec 11: Nepal´s trade deficit increased by 6.3 percent to Rs 180.18 billion, or an average of Rs 1.5 billion per day, over the first four months of fiscal year 2013/14. Weak supply capacity on the back of slowing industrial growth and rising consumption backed by double digit increment in remittance flow is the main reason behind growing trade deficit. Depreciation of Nepali currency against US dollar also drove up the import bills. Though stronger greenback supported higher export receipts, volume of exports from imports is seven times higher than exports volume. Fresh statistics of Trade and Export Promotion Center (TEPC) shows Nepal´s total import during the review period increased by 7.5 percent to Rs 209.8 billion. Similarly, exports increased by 15.7 percent to Rs 29.62 billion during the four-month period ending mid-November. During the review period, exports of iron and steel products rose by 9.3 percent to Rs 4.19 billion. Similarly, export of woolen carpet and readymade garment (RMG) jumped by a staggering 46.2 percent and 54 percent, respectively, to Rs 2.64 billion and Rs 2.02 billion. As usual, petroleum was Nepal´s largest import during the review period with import bill soaring by 14.4 percent to Rs 37.86 billion. According to the statistics, Nepal imports petroleum products worth Rs 315 million every day. However, imports of iron and steel products, Nepal´s second largest imports, declined by 3.6 percent to Rs 19.12 billion. Nepal suffered trade deficit worth around Rs 119 billion with India -- the largest trade partner - during the review period. Similarly, trade deficit with China - the second largest trading partner - stood at Rs 22 billion in the four-month period. Nepal imported products worth Rs 137.87 billion and 22.90 billion from India and China, respectively. During the period, Nepal imported goods worth Rs 10.68 billion and Rs 5.04 billion, respectively, from the United Arab Emirates (UAE) and Indonesia. Nepal´s exported goods worth Rs 18.85 billion, a rise of 16.4 percent, to India during the first four months of 2013/14, compared to the amount recorded in the same period last year. Similarly, exports to US, Germany and the United Kingdom touched Rs 2.5 billion, Rs 1.29 billion and Rs 800 million, respectively, posting impressive growth by 35.4 percent, 41.1 percent and 53.7 percent.	Top five imports  Petroleum Rs 37.86 billion Iron/steel Rs 19.12 billion Vehicles/Parts Rs 15.07 billion Mechineries/parts Rs 11.10 billion Electronics/Electricals Rs 7.98 billion Top five exports  Iron/steel  Rs 4.19 billion Carpets Rs 2.64 billion Garments Rs 2.02 billion Yarns Rs 1.76 billion Textile Rs 1.72 billion
Published on 2013-12-12 03:37:21