Both exports, imports down in first quarter

KATHMANDU: Nepal’s foreign trade suffered as both exports and imports fell in the first quarter of the fiscal year 2024/25.

According to the Current Macroeconomic Situation Report published by the Nepal Rastra Bank (NRB) on Tuesday, merchandise exports fell by 6.1% to Rs 38.38 billion in the first three months of 2024/25, compared to a 2.3% decline in the same period last year. Exports to India, China, and other countries dropped by 5.3%, 24.8% and 6.6%, respectively. The export of products like soybean oil, tea, particle board and shoes increased during the review period, while zinc sheets, palm oil and cardamom, among others, experienced a decline.

Merchandise imports, too, decreased by 4.2% to Rs 390.75 billion over the three-month period, contrasting with a 1.7% rise in the corresponding period of the last fiscal year. Imports from India, China, and other countries declined by 3.9%, 1.5%, and 7.9%, respectively. While imports of transport equipment and edible oil rose, there was a sharp decline in imports of gold, petroleum products and electrical equipment.

The overall trade deficit narrowed by 4.0% to Rs 352.37 billion over the three months, with the export-import ratio slightly decreasing to 9.8% from 10.0% in the first three months of the previous fiscal year.

In terms of composition, intermediate and final consumption goods dominated exports at 51.3% and 47.6%, respectively, while capital goods accounted for only 1.1%. On the other hand, intermediate goods made up 49.1% of total imports, final consumption goods 42.5%, and capital goods 8.5%.