Both export, import grow in five months

KATHMANDU: Both exports and imports went up over the first five months of fiscal year 2024/25.

According to the Current Macroeconomic Situation Report of the first five months of 2024/25 released by Nepal Rastra Bank (NRB) on Friday, merchandise exports surged by 16.5% to Rs 73.66 billion. Exports had gone down by 6.1% in the same period of the previous fiscal year.

Destination-wise, exports to India and China soared by 23.7% and 68.9%, respectively, while exports to other countries fell by 1.2%. Exports of soybean oil, tea, polyester yarn, particle board and woolen carpets went up during the period, while exports of palm oil, zinc sheets, ginger, ready-made garments, and herbs declined.

Merchandise imports posted a modest 3% growth to Rs 661.49 billion during the review period, compared to a 3.4% decrease in the corresponding period of the previous fiscal year. According to the report, imports from India and China went up by 4.0% and 4.6%, respectively, while imports from other countries fell by 1.8%. Major imports showing growth included transport equipment, vehicle spare parts, crude soybean oil, sponge iron, garlic and edible oil. Conversely, imports of petroleum products, gold, crude palm oil, peas and bitumen declined.

The total trade deficit expanded by 1.5% to Rs 587.83 billion over the first five months of 2024/25, compared to a 3.1% decline in the same period of the previous fiscal year. Despite the deficit, the export-import ratio improved to 11.1% from 9.8% last year, indicating a slight enhancement in export performance over imports.

Intermediate goods accounted for 44.1% of total exports, with final consumption goods sold at 55%. On the import side, intermediate goods made up 48.8%, capital goods 8.8%, and final consumption goods 42.5% of total imports.

Net services income showed a deficit of Rs 40.71 billion during the review period. Although travel income increased by 3.1% to Rs 35.19 billion, it was dwarfed by a 12.2% rise in travel payments to Rs 85.01 billion, driven largely by expenses for foreign education.