July 26, 2017
Nepal’s trade with third countries is currently on rise as the country’s traders increased their imports from France, Ukraine, Argentina, Saudi Arabia and South Korea, owing to low import costs.
According to TPEC Director Suyash Khanal, changing lifestyles of Nepalese and increasing demand for diversified products resulted in the rise of imports from new trade sources.
“Importers looking to minimize costs have started trading with new suppliers,” said Khanal.
Nepal’s imports from third countries were up 69 percent in the first 11 months of the last fiscal year 2016-17, noted the Trade and Export Promotion Centre (TEPC).
According to TEPC, imports from Ukraine grew three-fold to reach Rs 6.62 billion mark, with agricultural equipment and soybean oil forming the major chunk of imported products. Whereas, imports from France saw a two-fold rise to reach Rs 13.21 billion, with jewelry, wine and cosmetics being the major products imported.
Meanwhile, imports from South Korea witnessed 82 percent rise to reach Rs 8.22 billion mark during the review period. Readymade clothes, electronic appliances and vehicles form the major portion of imports from South Korea in the recent times, says TEPC.
Argentina, Latin America and Saudi Arabia are among other regions, which have increased their shipments to Nepal.
Nepal’s export to Turkey witnessed a 90.8 percent rise to reach Rs 3.6 billion mark, with yarn being the major export product. According to Khanal, yarn exports account for around 89 percent of the country’s export earnings from Turkey. Synthetic and jute fibers are among products exported.
As a whole, the country’s export earnings in the first 11 months of the last fiscal year totaled Rs 67.35 billion with 5.8 percent rise. Whereas the import expenses totaled Rs 893.09 billion witnessing 28.1 percent rise, thus widening the country’s trade deficit by 30.3 percent.
Meanwhile, Nepal’s trade with its close partner, India, takes a hit as the Indian officials beef up security checks in the Nepal-India border point at Bhairahawa in the west.