Himal Press 
KATHMANDU: Nepal suffered a trade deficit of Rs 359.17 billion in the first three months of the current fiscal year – a decline of 13.13% compared to data from the same period of the previous fiscal year.
The country’s total foreign trade was worth Rs 442.82 billion in the review period.
According to the Department of Customs, Nepal’s total imports fell by 16.2% to Rs 400.99 billion in the review period of the current fiscal year. The country’s imports during the period fell by a whopping 35.71% to Rs 41.82 billion.
The decline in trade deficit is largely due to the import ban put in place by the government. The government took the decision to slow down the depletion of foreign currency reserves due to skyrocketing imports.
The government has prohibited the import of motor vehicles, liquors, mobile phones costing more than $300 and motorbikes with a displacement of more than 150cc until mid-December.
It first prohibited imports of 10 different goods on April 26 to arrest the depletion of the foreign exchange reserves. However, it resumed imports of 10 goods – diamonds, television sets larger than 32 inches, toys, cards and snacks – in August, citing Dashain festival.
Trade surplus with only 23 countries
Out of its 127 trading partners, Nepal enjoys a trade surplus with only 23 countries. The country’s highest trade surplus is with the US.
Nepal enjoyed a trade surplus of Rs 460.91 million with the US in the review period. While Nepal exported goods worth Rs Rs 5.16 billion from the US, it imported goods worth Rs 4.69 billion from the world’s largest economy.
Likewise, Nepal exported goods worth Rs 5.16 billion to the US.
Other countries with which Nepal enoy as a trade surplus include Denmark, Cambodia, Norway, Uruguay, and Sweden etc.
Highest trade deficit with India
Nepal suffered a trade deficit of Rs 215.80 billion in the review period. Nepal imported products worth Rs 244.77 billion from its southern neighbor, while its exports to India was worth only Rs 28.97 billion.
Similarly, the trade deficit with Nepal’s second-largest trading partner, China, stood at Rs 55.87 billion. Nepal imported goods worth Rs 56.04 billion from China, while its exports to the northern neighbor were worth only Rs 164.24 million.
Other countries with whom Nepal suffers a high trade deficit include Indonesia, Argentina and UAE, etc.
Petroleum products top import list
Petroleum products continued to become the country’s major imports in the review period.
According to the Department of Customs, Nepal imported petroleum products (diesel, petrol and LPG) worth Rs 62.47 billion in the review period.
Crude soyabean oil (Rs 14.04 billion), crude palm oil (Rs 9.97 billion), ferrous products (Rs 9.55 billion), and smartphones (Rs8.53 billion) were the country’s major imports over the first three months of the current fiscal year.
