Nepal’s trade landscape reflects a concerning downturn, with foreign trade experiencing a substantial decline during the first ten months of the current fiscal year. Reports indicate a stark plunge of 36.69 billion rupees, painting a challenging picture for the nation’s economic outlook.
As of April, Nepal’s total foreign trade stands at 1.429 trillion rupees, showcasing a notable decrease from the previous fiscal year’s figure of 1.466 trillion rupees. This downward trend underscores the pressing need for strategic interventions to rejuvenate Nepal’s trade dynamics.
Amidst these economic challenges, Nepal grapples with a trade loss amounting to 1.177 trillion rupees, signaling a reduction from the previous year’s deficit of 1.242 trillion rupees. This reduction translates to a decrease in the trade deficit by 27.238 billion rupees, offering a glimmer of hope amidst the gloomy economic climate.
The Customs Department’s statistics reveal a downturn in both imports and exports, with imports experiencing a decline of 2.39% and exports plummeting by 3.61%. Nepal’s exports totaled a mere 126 billion rupees, juxtaposed with imports soaring to 13.033 trillion rupees.
A comparative analysis with the corresponding period of the previous fiscal year unveils a stark contrast, with Nepal importing 1.335 trillion rupees and exporting 130.9 billion rupees. This disparity accentuates the magnitude of the current economic challenges faced by the nation.
The import-export ratio, a critical metric of trade dynamics, stands at 10.33 (1.26%), with exports constituting a meager 8.83% while imports dominate at 91.17% of the total trade. This imbalance underscores the urgent need for concerted efforts to bolster Nepal’s export capacity and mitigate reliance on imports.
As Nepal navigates through these economic headwinds, policymakers are urged to devise comprehensive strategies aimed at revitalizing the nation’s trade sector. Addressing structural impediments and fostering a conducive business environment are imperative steps towards fostering sustainable economic growth and resilience.
Related:
