Both imports, exports up in four months

KATHMANDU: Merchandise exports increased by 4.2% over the first fourth of fiscal year 2024/25 to Rs 52.67 billion, compared to a 7.7% decline in the same period last year.

According to the Current Macroeconomic Situation Report for the first four months of FY 2024/25 released by the Nepal Rastra Bank on Thursday, exports to India increased by 8.4%, while exports to China and other countries fell by 18.3% and 3%, respectively.

Imports saw a marginal increase of 0.2% to Rs 513.39 billion, driven by higher imports from India (0.9%) and China (2.9%), the report states.

Imports of transport equipment, edible oil, and telecommunications parts increased during the review period, while imports of petroleum products, gold, and aircraft parts declined.

Similarly, exports of soyabean oil, tea, polyester yarn and threads, particle board and oil cakes, among others increased whereas exports of palm oil, zinc sheet, readymade garments, juice, and ginger among others decreased in the review period.

The total trade deficit slightly decreased by 0.3% to Rs 460.72 billion. Such a deficit had decreased by 3.3% in the corresponding period of fiscal year 2023/24. Similarly, the export-import ratio improved to 10.3% in the review period from 9.9% in the previous year.

The intermediate and final consumption goods accounted for 48.2% and 50.9% of the total exports respectively, whereas the ratio of capital goods in total exports remained at 1% in the review period. In the same period of the previous year, the ratio of intermediate, capital and final consumption goods remained at 55.6%
percent, 0.3% and 44.1% of total exports, respectively.

Likewise, on the imports side, the share of intermediate goods remained at 48.7%, capital goods at 8.7% and final consumption goods at 42.5% in the four-month period of 2024/25. Such ratios were 49.2%, 8.8% and 42.1%, respectively, in the same period of the previous year.