Nepal govt’s efforts to reduce trade deficit fall short as numbers persist

Kathmandu: In a concerning development for the nation’s economy, the trade deficit for the initial seven months of the current fiscal year has surged past Rs 811 billion, despite assurances from the government about addressing the issue.

According to data released by the Department of Customs, the trade deficit has reached Rs 811.11 billion, showcasing a modest decrease of 1.77 percent in comparison to the same period last year. However, the persistence of the deficit at such levels raises concerns about the effectiveness of the government’s measures.

Foreign Trade Experiences Downturn

The overall foreign trade of the country has witnessed a decline during this period, amounting to Rs 984.77 billion. Importantly, imports have decreased by 2.31 percent, and exports have seen a more significant dip of 7.07 percent.

Imports stood at Rs 897.94 billion, while exports contributed Rs 86.83 billion over the seven months, resulting in a 2.75 percent decline in total foreign trade. This marks a notable decrease from the corresponding period in the previous year when Nepal’s foreign trade amounted to Rs 1.12 trillion, emphasizing a substantial decrease to Rs 984.77 billion in the current fiscal year.

The challenges in the trade sector raise questions about the government’s strategies to manage and alleviate the trade deficit, with stakeholders closely monitoring the economic landscape for potential impacts on various sectors.