KATHMANDU: Nepal’s foreign trade grew sharply in the first three months of the current fiscal year. Exports rose by more than 57 percent but higher imports pushed the trade deficit up by 34.71 percent.

According to the latest data for the first quarter of FY 2083/84 (Shrawan to Ashoj), the trade deficit reached Rs 532.49 billion. In the same period last year, it was Rs 395.30 billion.

Total foreign trade expanded 40.71 percent to Rs 761.07 billion. It was Rs 540.87 billion a year earlier.

Exports show strong growth

Exports increased 57.03 percent to Rs 114.29 billion. In the first three months of FY 2082/83, Nepal exported goods and services worth Rs 72.78 billion.

Imports remain high

Imports grew 38.18 percent to Rs 646.78 billion by the end of Ashoj. Last year, imports for the same period stood at Rs 468.08 billion.

Import export ratio improves

Because exports grew faster, the import export ratio fell 12 percent to 5.66. Last year, Nepal imported Rs 6.43 worth of goods for every Rs 1 it exported.

Share in total trade

• Exports now account for 15.02 percent of total trade, up from 13.46 percent. This is a rise of 11.59 percent.
• Imports account for 84.98 percent of total trade, down 1.80 percent from 86.54 percent last year.

Despite the improvement in exports, imports still make up about 85 percent of Nepal’s foreign trade and the deficit continues to grow in rupee terms.