Both imports, exports down

KATHMANDU: Nepal’s merchandise export fell 3.6% to Rs 126.17 billion over the first 10 months of fiscal year 2023/24 compared to a 24.5% decline in the same period of the previous fiscal year.

The Current Macroeconomic and Financial Situation Report for the first 10 months of 2024/25 released by the Nepal Rastra Bank (NRB) on Monday shows exports to India and other countries fell by 5.6% and 1.4%, respectively, while exports to China surged 68.1%. Notable increases were seen in exports of zinc sheets, particle boards, juice, readymade garments and oil cakes. In contrast, exports of palm oil, soybean oil, woolen carpets, tea, and brans decreased.

Merchandise imports also went down by 2.4% to Rs. 1,303.36 billion, compared to a 16.8% decrease a year ago. Imports from India and other countries fell by 3.4% and 20.8%, respectively, while imports from China increased by 34.4%. Significant increases were noted in imports of transport equipment, vehicle parts, readymade garments, aircraft spare parts, and electrical equipment, whereas imports of crude soybean oil, gold, hot rolled sheets in coil, crude palm oil and rice/paddy decreased in the review period.

The total trade deficit narrowed by 2.3% to Rs 1,177.18 billion during the review period, compared to a 15.9% decrease in the same period of the previous fiscal year. The export-import ratio slightly decreased to 9.7% from 9.8% in the previous year.

In terms of composition, intermediate and final consumption goods accounted for 56.6% and 42.8% of total exports, respectively, while capital goods made up a negligible 0.6%. On the imports side, intermediate goods comprised 48.9%, capital goods 9.3% and final consumption goods 41.8%.