December 22: Nepal’s export has increased in the first four months of the current fiscal year while the import has decreased during the same period.

According to the latest update on the Current Macroeconomic and Financial Situation of Nepal released by Nepal Rastra Bank on Monday (December 21), Nepal’s import decreased 10.6 percent to Rs 402.49 billion in the review period compared to a decrease of  6.9 percent a year ago.

Destination-wise, imports from India, China and other countries decreased 3.1 percent, 25.0 percent, and 19.8 percent respectively, the central bank said.

The report states that imports of rice, crude soybean oil, telecommunication equipment and parts, edible oil, and medical equipment and parts among others increased whereas imports of petroleum products, aircraft spareparts, transport equipment and parts, crude palm oil and other machinery and parts among others decreased in the review period.

In four months of 2020/21, Nepal’s exports increased 10.8 percent to Rs 40.20 billion compared to an increase of 23.9 percent in the same period of the previous year.

Destination-wise, exports to India and other countries increased 14.9 percent and 6.5 percent respectively whereas exports to China decreased 59.2 percent.

Exports of cardamom, jute goods, polyester yarn and threads, noodles, and medicine (Ayurvedic) among others increased whereas exports of palm oil, pulses, zinc sheet, handicrafts, and skin among others decreased in the review period, according to the report.

Based on customs points, exports from Birgunj Dry Port, Tatopani, Kanchanpur and Rasuwa customs offices decreased whereas exports from all the other customs points increased in the review period.

On the import side, imports from all the other customs points decreased except Bhairahawa, Biratnagar, Nepalgunj, Krishnanagar, and Kailali customs offices.

According to the central bank, the country’s total trade deficit narrowed down 12.5 percent to Rs.362.29 billion in four months of 2020/21. Such deficit had contracted 8.9 percent in the same period of the previous year. The export-import ratio increased to 10.0 percent in the review period from 8.1 percent in the same period of the previous year.

Remittance inflows increased 11.2 percent to Rs 337.72 billion in the review period against a decrease of 2.8 percent in the same period of the previous year.

The current account remained at a surplus of Rs 20.46 billion in the review period against a deficit of Rs 34.12 billion in the same period of the previous year.

In the review period, capital transfer decreased 9.3 percent to Rs 4.15 billion and net foreign direct investment (FDI) decreased 23.9 percent to Rs 3.75 billion, the central bank further stated. In the same period of the previous year, capital transfer and net FDI amounted to Rs 4.57 billion and Rs 4.92 billion respectively.

Balance of Payments (BOP) remained at a surplus of Rs 110.65 billion in the review period. Such surplus was Rs 27.29 billion in the same period of the previous year.

According to the central bank, the year-on-year consumer price inflation stood at 4.05 percent in the fourth month of 2020/21 compared to 5.76 percent a year ago. Food and beverage inflation stood at 5.73 percent whereas non-food and service inflation stood at 2.75 percent in the review month.

The price of vegetables sub-group rose 20.88 percent and pulses and legumes sub-group rose 13.70 percent on y-o-y basis.