-  Thursday 01 October 2020

Foreign trade goes up by 20pc

Nepal's total foreign trade has grown by 20.4 percent, reaching Rs 120.42 billion during the first six months of the current fiscal year.
While total imports of the country grew by 22.5 percent to Rs 87.91 billion, total exports posted a growth of 15.1 percent and touched Rs 32.50 billion, reveals the latest statistics of the central bank.

Higher growth in imports, as compared to exports however, has expanded trade imbalance, with trade deficit widening by 27.3 percent during the period.

According to statistics of Nepal Rastra Bank (NRB), the trade deficit of the country reached Rs 55.41 billion, while it was Rs 43.54 billion.

Of the total trade, trade with India increased by 30.1 percent to Rs 76.95 billion, while trade with other countries went up by 18.5 percent to Rs 43.47 billion.

With ballooning consumption, largely swelled by increased remittances of overseas workers, country's trade with India remained at 63.9 percent. Trade with other countries, on the other hand, made 36.1 percent of the total trade.

Of the total exports, export to India expanded by 27.1 percent in the first half of 2005/06 to Rs 22.58 billion. Exports to other countries however, declined by 5.1 percent and remained at Rs 9.92 billion.

Increase in the export of vegetable ghee, juice, polyester yarn, bags, readymade garments, zinc sheet and G.I. pipe contributed to the rise in exports to India, says the NRB report. Decline in exports to other countries have been attributed to downturn in the export of readymade garments, Nepali paper and paper products, and tea, among others.

Of the total imports, imports from India rose significantly by 31.4 percent to Rs 54.37 billion in the first half of 2005/06. Imports from other countries increased by 10.4 percent and remained at Rs 33.54 billion during the period.

An upsurge in the import of petroleum products, rice, chemicals, MS billet, medicine, thread and cement from India and crude palm oil, crude soybean oil, textile dyes, transport vehicles and parts and polythene granules from other countries led to the growth of overall imports in the first six months of 2005/06.

Vegetable ghee, polyester yarn, jute goods, zinc sheet and textiles were recorded as the top five exports of the country to India, while woolen carpet, readymade garment and pashmina were largest third country exports.

Likewise, petroleum products, vehicle parts, MS billet and chemicals were the largest imports from India, while vehicle and spare parts, medicine, MS billet, cold-rolled sheet in coil and chemicals were the largest imports from other countries.


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