August 18: Nepal’s trade deficit increased by 23.0 percent to Rs 1720.42 billion in the last fiscal year. According to Nepal Rastra Bank, such a deficit had increased 27.3 percent in the previous year.

The Current Macroeconomic and Financial Situation Report released by the central bank on Tuesday states that the export-import ratio increased to 10.4 percent in the review period from 9.2 percent in the previous year.

In the review year, merchandise imports from India by paying convertible foreign currency amounted Rs 213.53 billion compared to Rs 190.54 billion in the previous year.

During 2021/22, merchandise exports increased by 41.7 percent to Rs 200.03 billion compared to an increase of 44.4 percent in the previous year.

Destination-wise, exports to India and other countries increased 45.9 percent and 30.4 respectively whereas exports to China decreased 20.4 percent.

According to the report, exports of palm oil, woolen carpet, polyester yarn and thread, zinc sheet, juice, among others, increased whereas exports of soybean oil, cardamom, tea, medicine (ayurvedic), wire, among others, decreased in the review year.

Meanwhile, merchandise imports increased by 24.7 percent to Rs 1920.45 billion compared to an increase of 28.7 percent a year ago.

Destination-wise, imports from India, China and other countries increased 23.5 percent, 13.2 percent, and 36.3 percent respectively.

Imports of petroleum products, medicine, crude palm oil, sponge iron, gold, among others, increased whereas imports of MS billet, cement, rice/paddy, pulses, medical equipment and tools, among others, decreased in the review year.

Based on customs points, exports from Kanchanpur Customs Office decreased whereas exports from all other major customs points increased in the review year. On the import side, imports from all major customs points increased in the review year.