Money & Finance
Nepal's trade deficits with its major trading partners continued to rise, leading to a Rs711.85 billion trade deficit in the first six months of the current fiscal year.
The country has conducted foreign trade with more than 148 countries. However, it incurs deficits with most countries with whom it trades bilaterally.
According to the Department of Customs trade statistics, the country has a trade deficit with 116 countries out of 148 trade partners during the first six months of the current fiscal year.
The trade deficit is high due to the inability to increase the production and productivity of export items.
During the review period, Nepal enjoyed a trade surplus only with 32 of its 148 trade partner countries.
The country's trade deficit decreased marginally due to a fall in imports and exports during the review period.
In the meantime, Nepal’s exports were reduced to Rs80.80 billion during the review period, while imports also declined to Rs792.66 billion.
During the review period, Nepal’s highest trade deficit is with its neighbours, India and China, the two biggest trading partners.
Nepal’s trade deficit with India reached Rs428.48 billion, while with China it reached Rs109.63 billion.
During the review period, Nepal exported goods worth Rs57.84 billion to India, while goods worth Rs486.33 billion were imported from India.
Similarly, goods worth Rs. 109.97 billion were imported, while goods worth only Rs341 million were exported to China.
Nepal has the third biggest trade deficit with Indonesia at Rs24.78 billion.
The county has a trade deficit with the United Arab Emirates at Rs17.84 billion, Argentina at Rs16.58 billion, Malaysia at Rs9.62 billion, Ukraine at Rs7.72 billion, with Viet Nam at Rs4.14 billion, and Thailand Rs4.96 billion.
Similarly, Nepal has a trade deficit with Taiwan at Rs1.74 billion, South Africa at Rs1.71 billion, and Singapore at Rs2.84 billion during the first six months of the current fiscal year.
The country has a trade deficit with Australia at Rs7.34 billion, with Jordon at Rs6.42 billion, South Korea at Rs4.14 billion, and Japan at Rs1.96 billion.
According to the report, the country has a trade surplus with Afghanistan, Algeria, Angola, Azerbaijan, Bahamas, Bolivia, Bosnia and Herzegovina, Cambodia, Congo, Croatia, Denmark, Estonia, Guadeloupe, Iceland, Kyrgyzstan, Latvia, Mali, Malta, Mauritius, Monaco, Morocco, New Caledonia, Norway, Romania, Saint Lucia, Sudan, Trinidad and Tobago, United States, Uruguay, Zambia and Zimbabwe.
However, the surplus amount has remained inadequate to stem the country's rising trade deficit.
Nepal has a higher trade surplus with Denmark, followed by the United States. In the first six months of the current fiscal year, Nepal has made a trade surplus of Rs344 million with Denmark and Rs136 million with the United States.
During this period, Nepal exported goods worth Rs534 million to Denmark and imported goods worth Rs190 million.
Nepal exported goods worth Rs9.12 billion to the United States while imported goods worth Rs8.98 billion during the review period.
