June 23: In the 11 months of current FY, the total foreign trade of Nepal has amounted to Rs 746.65 billion. The total foreign trade by mid-June of current FY is 3.14 percent less than the same period of the last FY. According to the statistics of custom department, such trade was of Rs 770 billion in the last FY. The department attributed the decrease in foreign trade to the closure of Tatopani check point, the main commercial custom point with China in North and the border blockade in South for 6 long months.  

The foreign trade in earlier months of the current FY was stagnant. However, with the opening of the border in South and beginning of import from Rasuwagadhi in North flourished the import in later months. “As a result, export and import has sluggishly taken the similar pace as of before the blockade and earthquake in the recent months,” says Surya Sedhai Spokesperson of Custom Department.  He added that foreign trade of Rs 308.50 billion was registered in the first 6 months of current FY, due to constraint in transportation of imported goods and inablility of Nepali industries to run in full capacity because of Tarai stir and scarcity of raw materials.

The department informs that goods and services worth Rs 277 billon has entered Nepal in the first 6 months of current FY. Similarly, goods and services of Rs 31.50 billion has been exported from Nepal during the period. The half yearly import of current FY is 26.5 percent less in compare to the same period of last FY. In the first half of the last FY, goods and services worth Rs 377 billion had been imported and Rs 43.39 billion worth of goods and services were exported.

In the total amount of trade till mid-June of current FY, import covers Rs 685.42 billion and export covers Rs 61.23 billion. Such trade was Rs 696.7 billion and Rs 77.80 billion respectively in the same period of the last FY. Due to the decrease in production of goods because of complications in supply of raw materials and fuel in Nepal, it could not export as much goods and services as in the last FY.

Meanwhile,, the government has aimed to surpass Rs 100 billion export in the recent years. For this, it has offered export incentives in a bid to promote export of various goods and services, however export from Nepal is in decreasing trend. The trade deficit has reached Rs 324.18 billion in the review period of current FY from Rs 615.27 billion of the same period of last FY. Ratio of export-import of current FY has been rested at 1:11. The foreign trade has been directly affected by the contraction of real economy and expansion of parallel economy because of bandhs, strikes and blockade.