Monday, September 5, 2011

Imports six times more than exports, petroleum products import records highest

The country's total exports is less than six times to Rs 64.56 billion from total merchandise import of Rs 394.90 billion, according to annual macroeconomic report of 2010-11 published by the central bank here today.
But export trade — which had declined by 10.2 per cent a fiscal year ago, recorded a growth of 6.1 per cent, it said, adding that merchandise imports increased by 5.5 per cent to Rs 394.90 billion primarily led by strong growth (43.9 per cent) of petroleum product import.
Nepal has imported Rs 75.07 billion — the highest among the commodity imports — worth petroleum products in the last fiscal year, compared to petroleum products imports of Rs 51.61 billion in the fiscal year 2009-10 and Rs 41.40 billion in 2008-09.
"Due to the improvement in the export and reduction in growth of import, total trade deficit went up only by 5.4 per cent to Rs 330.34 billion," it said, adding that trade deficit had expanded by 44.6 per cent in a fiscal year ago. "The ratio of export to import increased marginally to 16.3 per cent compared to a growth of 16.2 per cent a fiscal year ago. But the share of India in Nepal's total trade stood at 66.4 per cent in 2010-11 compared to 59.1 per cent a fiscal year ago.
"The overall BoP that had remained in deficit till the ten months ended with a 'surprise' Rs 2.93 billion surplus against a deficit of Rs 3.63 billion in a fiscal year. The central bank attributed improvement in the BoP to the significant moderation in the current account deficit coupled with satisfactory increase in the government capital transfers and external loan. "The current account deficit shrank to Rs 11.91 billion from a deficit of Rs 28.14 billion a year ago," it added.
The current account deficit to GDP ratio improved to 0.9 per cent from 2.4 per cent a year ago. The service account deficit declined considerably by 47.7 per cent to Rs 8.57 billion.
Similarly, the net transfer account registered a growth of 8.9 per cent to Rs 307.86 billion compared to that of a year ago, as the pension receipts rose by 12.2 per cent to Rs 28.99 billion and workers' remittances increased by 9.4 percent to Rs 253.55 billion. Likewise, under the financial account, FDI of Rs 6.44 billion was recorded compared to the level of Rs 2.85 billion a fiscal year ago.
the capital account, capital transfer increased by 26.5 per cent to Rs 15.91 billion compared to the level of Rs 12.58 billion a fiscal ago, whereas gross foreign exchange reserves increased by a mere 1.2 per cent to Rs 272.10 billion in mid-July from the level of Rs 268.91 billion as at mid-July 2010.Of total reserve, NRB's reserves augmented by 3.8 per cent to Rs 213.09 billion in mid-July 2011 from a level of Rs 205.37 billion as at mid-July 2010, it said, adding that the gross foreign exchange reserves in Us dollar terms increased by 6.2 per cent to $3.84 billion in mid-July.
Based on the trend of import during the review year, the current level of reserves is sufficient for financing merchandise imports of 8.4 months and merchandise and service imports of 7.3 months.

Annual Figures
Petroleum import — Rs 75.07 billion
Gold import — Rs 11.35 billion
Total merchandise import — Rs 394.90 billion
Total export — Rs 64.56 billion
Remittance — Rs 253.55 billion
Budget deficit — Rs 50.63 billion
Revenue mobilisation — Rs 200.79 billion
FDI commitment — Rs 10.05 billion
Tourist arrivals by air — 500,750
Average consumer price inflation — 9.6 per cent
Balance of Payment — Rs 2.93 billion surplus

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