Trade deficit shrinks to Rs 307 billion by 12.02 per cent in the first quarter of the current fiscal year compared to the same period of the last fiscal year, due to government move to tighten imports of luxury goods including automobiles. This is the third straight month imports have fallen and export earnings have swelled.
According to the Department of Customs (DoC), Nepal spent Rs 334.94 billion in imports – between mid-July and mid-October – which is down by 10.34 per cent compared to the imports of the same period in the last fiscal year. “Likewise, the export earnings soared by 14.41 per cent to Rs 27.16 billion during the period.”
Based on the new import and export data, Nepal spends Rs 12.3 for import for every export worth Re 1. “The import to export ratio has also declined to 12.3:1, compared to the ratio was 15.7:1 during the same period last year,” the department data revealed, adding that
Though, the government boosted the decline in imports to an outcome of the policy reforms to restrict import of luxury goods including the automobiles and boost exports, the slowdown in imports has bleed the government coffer as the government failed to meet the revenue mobilisation target. The government has doubled the excise duty on imported automobiles through the budget for the current fiscal year 2018-19, whereas the central bank has jacked up the down payment on auto loans to 50 per cent of the value of the vehicle tightening the auto imports.
Nepal exported goods worth Rs 17.87 billion to India – almost 66 per cent of the total export earnings in the first quarter – due to increased exports of palm oil. Similarly, Nepal imported Rs 207.41 billion –which is 62 per cent of the total imports during the period – worth goods from India. “The trade deficit with India has also dropped to Rs 189.54 billion from Rs 222.95 billion in the first quarter of the last fiscal year.”
The rosy picture of the rise in exports is mainly because traders have been importing crude palm oil and refining it for export to India. According to the department, Nepal exported palm oil worth Rs 5.7 billion in the first three months of this fiscal year compared to Rs 374 million in the same period in the last fiscal year.
The government has raised the export incentives in major exportable items to 3 per cent to 5 per cent from 1 per cent to 2 per cent. The government provides export incentives to the goods that have at least 50 per cent value addition inside the country.
Despite the incentives, the country has seen a slump in the export of other major commodities including ginger, woollen carpets and textile floor coverings, shawls, scarves, and iron wire and non-alloy steel.
According to the Department of Customs (DoC), Nepal spent Rs 334.94 billion in imports – between mid-July and mid-October – which is down by 10.34 per cent compared to the imports of the same period in the last fiscal year. “Likewise, the export earnings soared by 14.41 per cent to Rs 27.16 billion during the period.”
Based on the new import and export data, Nepal spends Rs 12.3 for import for every export worth Re 1. “The import to export ratio has also declined to 12.3:1, compared to the ratio was 15.7:1 during the same period last year,” the department data revealed, adding that
Though, the government boosted the decline in imports to an outcome of the policy reforms to restrict import of luxury goods including the automobiles and boost exports, the slowdown in imports has bleed the government coffer as the government failed to meet the revenue mobilisation target. The government has doubled the excise duty on imported automobiles through the budget for the current fiscal year 2018-19, whereas the central bank has jacked up the down payment on auto loans to 50 per cent of the value of the vehicle tightening the auto imports.
Nepal exported goods worth Rs 17.87 billion to India – almost 66 per cent of the total export earnings in the first quarter – due to increased exports of palm oil. Similarly, Nepal imported Rs 207.41 billion –which is 62 per cent of the total imports during the period – worth goods from India. “The trade deficit with India has also dropped to Rs 189.54 billion from Rs 222.95 billion in the first quarter of the last fiscal year.”
The rosy picture of the rise in exports is mainly because traders have been importing crude palm oil and refining it for export to India. According to the department, Nepal exported palm oil worth Rs 5.7 billion in the first three months of this fiscal year compared to Rs 374 million in the same period in the last fiscal year.
The government has raised the export incentives in major exportable items to 3 per cent to 5 per cent from 1 per cent to 2 per cent. The government provides export incentives to the goods that have at least 50 per cent value addition inside the country.
Despite the incentives, the country has seen a slump in the export of other major commodities including ginger, woollen carpets and textile floor coverings, shawls, scarves, and iron wire and non-alloy steel.
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