February 10: Nepal’s merchandise exports to China have declined by 50 percent in the first six months of the current fiscal year, according to the Nepal Rastra Bank.

As per the Current Macroeconomic and Financial Situation Report unveiled recently by the central bank, exports to India and other countries have increased by 8.4 percent and 4.0 percent respectively while exports to Nepal’s northern neighbor, China, has decreased by 50 percent. Import from China has also declined by 18.5 per cent. Export of items like cardamom, pashmina, noodles, polyester thread, jute has gone up while the export of palm oil, pulses, zinc sheet, juice, wire, among others, decreased in the review period.

In six months of 2020/21, merchandise exports increased 6.1 percent to Rs.60.80 billion compared to an increase of 26.1 percent in the same period of the previous year, states the report. Meanwhile, merchandise import has dropped down by 4.8 percent to Rs 661.25 billion against the decrease of 4.0 percent  in the corresponding period of last fiscal year. Country-wise, import from India has increased by 3.5 percent. Import of items like rice, raw soybean oil, gold, MS billet, telecommunication equipment and machinery parts increased in the first six months of this fiscal year whereas imports of petroleum products, aircraft spareparts, crude palm oil, other machinery and parts, silver, among others, decreased in the review period.

According to the central bank, Nepal’s total trade deficit narrowed down 5.8 percent to Rs.600.45 billion in six months of 2020/21. Such deficit had decreased 6.1 percent in the same period of the previous year.

The export-import ratio increased to 9.2 percent in the review period from 8.2 percent in the same period of the previous year.

In the review period, remittance inflow increased by 11.1 percent to Rs 495.31 billion. Last year, the inflow of remittance had increased by 0.6 percent in the corresponding period.