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  • Nepal’s Trade Deficit Shrinks by an ‘Impressive’ 16.7% in FY 2019/20!
    Thursday 28th March 2024

    Nepal’s Trade Deficit Shrinks by 16.7% in FY 2019/20!

    The trade deficit of the country was NPR 1.32 trillion in FY 2018/19.
    Business

    Government

    News

     
    Nepal’s Trade Deficit Shrinks by 16.7% in FY 2019/20!

    The significant fall in exports amid the coronavirus pandemic has restricted the drop in Nepal’s trade deficit in the last Fiscal Year 2019/20.

    Even though the nation has enjoyed the rise in exports up to 11 months, the growth resorted to negative value due to a substantial fall in exports in the final month due to the pandemic.

    Nepal’s trade deficit has dropped by 16.71% to reach NPR 1.1 trillion over the last fiscal 2019/20 compared to the previous fiscal 2018/19. The trade deficit of the country was NPR 1.32 trillion in FY 2018/19.

     

    However, the drop in the trade deficit in FY 2019/20 is not as much as expected due to the coronavirus pandemic.

    Department of Customs (DoC)

    According to the Department of Customs (DoC), Nepal’s imports stood at NPR 1.19 trillion in 2019/20, down by 15.63% from NPR 1.4 trillion in FY 2018/19.

    Along with imports, the country’s export earnings also fell by a nominal 0.98% due to the coronavirus impact.

    Imports and Exports

    As per the Ministry of Industry, Commerce and Supplies, the fall in imports is primarily due to the nationwide lockdown and import restrictions for almost four months on the year-end in view of the pandemic.

    With the fall in the trade deficit, Nepal’s import and export ratio decreased to 12.45 from 14.61 in the last fiscal year. Nepal imported goods worth NPR 12.45 for every export earning of NPR 1 in 2019/20.

    Nepal primarily exports knotted carpets, textiles, iron and steel, hollow tubes, beverages, plastics, and vegetables. The country imports oil, iron and steel, gold, clothes, cement, pharmaceutical products, and electronic appliances, food, and vehicles.

    July 28, 2020 |

     
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