Imports increased by 68.13 percent in first quarter

Imports increased by 68.73 per cent to Rs 543.57 billion in the first three months of the current fiscal year.

According to the data from Customs Department, the import expenses surged by 63.73 per cent to Rs 478.52 billion in the first quarter, though the export volume has doubled. However, the export earning in the first quarter that stood at Rs 65.52 billion is almost enough to pay a single commodity -- petroleum products -- bill. "The trade deficit stood at 

The country had imported merchandise worth Rs 292.26 billion in the first quarter of the last fiscal year, due to restriction in trade because of Covid-19 pandemic. 

The worsening trade balance has, however, added pressure in foreign currency reserves, which has been going down in recent months also due to drop in remittance earnings. The forex reserve has depleted pushing the balance of payments (BoP) -- one of the key macroeconomic indicators -- into the red zone. The BoP recorded negative in the past few months also due to a whopping rise in imports along with slow rate of remittance inflows.

Nepal imported Rs 23.32 billion worth diesel, Rs 12.86 billion worth petrol, and Rs 12.18 billion worth cooking gas, apart from kesosene, which comes to around the country's total export earning.

Apart from petroleum products, Nepal imported Rs 11.07 billion worth gold, and Rs 10.17 billion worth silver in the firts quarter of the cirrent fiscal year, despite the government's increament in customs of the silver.