Exports up sixfold but imports far behind: NRB

Exports surged six-fold while imports more than doubled in the first quarter (Q1) of the current fiscal year in comparison to the same period the last fiscal year.
In the first three months of 2008-09 fiscal, exports went up by 27.1 per cent in comparison to a rise of just 4.3 per cent in the corresponding period for the previous year, according to the first quarter report of the Nepal Rastra Bank (NRB), the central bank. At the same time, total imports also increased by 30.6 per cent in the same period in comparison to a lower increase of 13.1 per cent in the Q1 of last fiscal year.
"Of the total exports, export to India increased by 10.1 per cent in comparison to an increase of 0.6 per cent in the same period last fiscal year. Exports to other countries alo soared by 58.3 per cent compared to an increase of 11.9 per cent in the same period of the previous year," said the report 'Recent Macroeconomic Situation' based on Q1.
The report attributes the rise in exports to India to the upsurge in exports of readymade garments, shoes and sandals, polyester yarn, copper wire, rod and GI pipe. Likewise, the rise in exports to other countries was ascribed to the upsurge in exports of pulses, woolen carpets, pashmina, herbs and tanned hides.
Meanwhile, imports from India augmented by 19.3 per cent in the review period compared to a growth of 13.7 per cent in the corresponding period the last fiscal year. Imports from other countries expanded by 48.5 per cent compared to just 12.1 per cent last fiscal, said NRB.An increase in the import of petroleum products, vehicles & spare parts, cold-rolled sheet in coil, hot-rolled sheet in coil and cement, among others, from India and gold, MS billet, telecommunication equipment & parts, computer & parts and polythene granules, among others, from other countries led to the surge in imports in Q1.
Overall Balance of Payment (BoP) recorded a surplus of Rs 7.7 billion in the first three months of this fiscal year in contrast to a deficit of Rs 5.6 billion in the same period last fiscal. According to the central bank, the current account also posted a surplus of Rs 8.8 billion in the period as against a deficit of Rs 6.6 billion in the corresponding period of the previous fiscal year. Such current account surplus was primarily attributed to the surge in net transfers by 75.5 per cent in the first three months. Under transfers, workers' remittances soared by 80.7 per cent compared to a growth of only 17.2 per cent in the same period last fiscal year.
Gross foreign exchange reserves stood at Rs 230.8 billion by mid-October, an upsurge by 8.5 per cent compared to the level as in mid-July 2008. Such reserves had gone down by 4.1 per cent in the same period of the preceding year.
However, in terms of the US dollar, gross foreign exchange reserves declined by 3.9 per cent to $3 billion in mid-October. In the same period the previous year, such reserves had gone down by 1.6 per cent. The current level of reserves is adequate for financing merchandise imports for 10.1 months and merchandise and service imports for eight months.