IANS
Nepal suffered a total of $5.63bn trade deficit during the 11-month-period of the fiscal year 2013-14 due to extreme growth in imports and sluggish rate of exports, government data showed yesterday.
According to data released by central bank Nepal Rastra Bank (NRB), the Himalayan nation recorded 28.6% ($1.25bn) increase in the total trade loss during the review period as compared to the same period in the fiscal year 2012-13.
During the period the poor South Asian country imported goods worth $6.45bn while export remained at $817.3mn.
“The country’s growth in import went up by 27% while exports rose to mere 16.9% during the review period ended in June, 2014.” A breakdown of the data indicated that the country lost $16.9mn a day in trade deficit.
According to the NRB, the trade deficit soared due to the massive import of items including, petroleum products, iron and steel, vehicles and auto-parts, machinery, electronics and food
commodities.
The country used $12.3bn to import petroleum products. With the country reeling under as much as 12 hours long load-shedding a day, the import of petroleum products has skyrocketed to keep generators, captive plants, vehicles and even household affairs in operation.
Similarly, the country paid $585mn for importing steel and iron products, $363mn for automobiles and parts, $257mn for electronics and $252mn for importing food commodities.
In terms of export, iron and steel products topped the country’s export chart by supplying products worth $109mn. It also earned $66.2mn from exporting carpet and $58.5mn from Acrylic yarn, among others.
Trade deficit has come to be the biggest threat of Nepal’s economy. Due to the supply side constraints including low production and obstacles at customs, the South Asian country has not been able to do significant amount of
export trade.
India has been Nepal’s largest trading partner during the review period with Nepal carrying more than 66% trade with its Southern neighbour. Nepal imported goods and services worth $4.34bn from India while exported goods worth $545mn to the southern market.
China has appeared the second largest trading partner of Nepal where it exported goods worth $23.2mn and imported goods and services worth $698mn from its northern partner during the period.