Nepal records over 1.4 trillion trade deficit in 10 months

The country's foreign trade deficit has reached Rs 1 trillion 431 billion 300 million in the first 10 months of the current fiscal year. This is 24.94 percent more than the trade deficit recorded in the corresponding period last fiscal year. The trade deficit was 1 trillion 145 billion 630 million in the first 10 months of the last fiscal year, 2020/21.

As per statistics released by the Department of Customs, the foreign trade deficit of the country has reached one trillion 778 billion until May 14 of the current fiscal year which ends on July 16, 2022. This volume of foreign trade is more by 30.49 percent compared to the previous fiscal year. The country's foreign trade in the 10 months of the last fiscal year was Rs 1 trillion 362 billion 580 million.

Although there is notable growth in foreign trade, the country's foreign trade deficit is surging due to the nation's import-based trade. According to the Department, import has increased by 27.95 percent in the first 10 months of the current fiscal year as compared to the corresponding period of the last fiscal year.

Goods worth Rs 1 trillion 254 billion were imported until mid-May of last fiscal year while imports have reached Rs 1 trillion 604 billion until the review period of the current fiscal year.

Likewise, export has increased by 59.80 percent in the first 10 months of the current fiscal year as compared to the corresponding period in the last fiscal year. Goods worth Rs 1 trillion 8 billion 470 million were exported until mid-May last fiscal year whereas goods worth more than Rs 1 trillion 73 billion were exported in the review period of the current fiscal year.

The share of export in foreign trade has increased by 22.46 percent. It has reached 9.75 percent by May 14 in the current fiscal year as against 9.96 percent during the corresponding period of the last fiscal year.

The county imported the highest amount of petroleum products as compared to other goods. Diesel worth Rs 123.70 billion was imported till May 14 of the current fiscal year. Likewise, petrol worth Rs 54.83 billion and LP gas worth Rs 52.59 billion were also imported during the first 10 months of the current fiscal year, added the Department.

Soybean worth Rs 49.41 billion was imported during the same period, shows the data. Similarly, Nepal exported soybean oil worth over Rs 45.35 billion. Nepalese businessmen import raw materials of soybean from different countries and export them to other countries by refining them in the country. So the contribution of soybean oil is seen in foreign trade. Similarly, raw materials of palm oil are also imported from different countries and exported to other countries after refining.

As per the report, palm oil worth over Rs 39.94 billion was exported in the first 10 months of the current fiscal year.