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Trade deficit increases by 71% in six months

By Our Reporter
eco-cartoonAll is not well with the national economy. Increasing trade deficit indicates this. According to statistics released by the Trade and Export Promotion Centre last week, trade deficit of Nepal reached as high as Rs 429 billion in the first six months of the current fiscal year.  This was an increase by almost 72 per cent.
According to the preliminary report of the Centre, country’s foreign trade reached over Rs. 502 billion while the export trade I limited to only Rs 36.3 billion. Thus the export and import ratio ha remained at 7.2 per cent and 92.8 per cent, which is in no way a good sign in the national economy.
Increase in the imports of goods is blamed for the alarming trade deficit.
During six months , Nepal imported petroleum products, iron nad iron products, vehicles and their parts, telecommunications appliances, electronic materials, apples and chemical fertilizers, mostly from India and China. Likewise, major export items included carpets, readymade garments, red lentils, polyester, handicrafts, noodles tooth pastes and cardamoms.
If the government does not introduced measures to increase the export trade, there is a danger of collapse of national economy.

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