Economy in drop as exports imports plunges

Kathmandu December 11-  Nepal’s exports and imports saw a drop in the first four months of the current fiscal year after overland trade was largely paralyzed by the ongoing Tarai unrest and an Indian trade embargo.

As the country’s exports and imports plunged by 30.5 percent and 38.3 percent respectively, the total foreign trade has seen a dip by 37.5 percent, according to latest statistics of Trade and Export Promotion Centre (TEPC).

According to the data provided by the TEPC, trade from two neighbouring countries—India and China—fell sharply.

Except gold, imports of all commodities saw a negative growth in the first four months of this fiscal. A steep decline in import was seen in petroleum products. Import of petroleum products fell sharply by 62.9 percent to Rs15.35 billion in the first four months.

Likewise, the import of machinery and parts plunged by 37.7 percent to Rs9.91 billion. Import of vehicles and its parts went down by 41 percent to Rs10.22 billion. 

Meanwhile, the country’s export also decreased by 30.5 percent to Rs20.84 billion during the review period. The iron and steel products witnessed the biggest fall of around Rs3 billion. Export earnings from iron and steel products decreased by more than 60 percent to Rs1.61 billion.

Due to sharp fall in import, the trade deficit also fell down during the first four months. The country’s trade deficit dropped by 39.4 percent to Rs182.45 billion. Nepal’s foreign trade deficit was recorded at Rs697.94 billion in the last fiscal year.

The obstruction has hit import from both India and China, the major trading partners of Nepal. The statistics show that import from India dipped by 43.4 percent and China by 19.4 percent to Rs26.57 billion. Since the April 25 earthquake, Nepal’s trading route with the northern neighbour has remained closed. Source: TKP