Kathmandu, Oct 28: Nepal’s exports rose by 57.03 per cent in the first quarter of the current fiscal year, but a much larger increase in imports pushed the country’s trade deficit up by 34.71 per cent to Rs 532.49 billion.
The country exported goods worth Rs 114.28 billion between mid-July and mid-October, up from Rs 72.78 billion in the same period last fiscal year, according to the Department of Customs (DoC). Despite the strong export performance, imports continued to dominate foreign trade, accounting for nearly 85 per cent of the total.
Imports jumped 38.18 per cent to Rs 646.78 billion from Rs 468 billion a year earlier. The resulting trade deficit widened from Rs 395.30 billion, underscoring the gap between Nepal’s export earnings and its spending on foreign goods.
Vegetable oil accounted for more than half of the country’s total exports. Shipments of vegetable oil generated Rs 59.32 billion, including Rs 52.60 billion from soybean oil, Rs 2.53 billion from sunflower oil and Rs 2.42 billion from palm oil.
Yarn ranked second among export commodities, earning Rs 4.97 billion. Tea, coffee and spices brought in Rs 4.65 billion, while woollen carpets and textile products generated Rs 3.72 billion.
India remained Nepal’s largest export market, purchasing goods worth Rs 95.59 billion during the review period. Exports to China amounted to Rs 670 million.
Nepal earned more than Rs 315 billion from exports in the last fiscal year. If the current pace continues, export earnings could reach a record high this fiscal year.
The rising export figures also increased exports’ share of Nepal’s total foreign trade to 15.02 per cent, up 11.59 percentage points. Imports accounted for the remaining 84.98 per cent, down 1.80 percentage points.
On the import side, fuel topped the list, with Nepal spending Rs 119 billion on petroleum products during the three months. Raw materials used to produce vegetable oil accounted for another Rs 66.66 billion, reflecting the substantial role of imported inputs in the country’s export earnings.
Imports of vehicles and spare parts reached Rs 53.19 billion. Machinery and mechanical parts accounted for Rs 42.11 billion, followed by electrical equipment at Rs 40.84 billion, iron and steel at Rs 39.37 billion, and fertilisers at Rs 32.75 billion.
Imports surged during the festive season, with Nepal bringing in goods worth Rs 245.26 billion in the latest month alone.
Argentina ranked as Nepal’s third-largest import source, supplying goods worth Rs 35.65 billion, largely crude edible oil. Imports from Saudi Arabia totalled Rs 11.56 billion, while those from Brazil stood at Rs 9.04 billion.
The latest figures show that rising exports have yet to narrow Nepal’s dependence on imports. Although export earnings increased sharply in the first quarter, the continued growth in import spending left the country with a substantially larger trade deficit.
People’s News Monitoring Service
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