Stories Tagged 'Trade deficit'
Outflow of funds from Nepal surpassed inflows by Rs85.32 billion in the first five months of the current fiscal year, mainly due to excessive rise in import bill compared to export earnings.
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Nepal’s trade deficit widened to Rs569.50 billion in the first five months of the fiscal year as imports of oil, construction materials, machinery, automobiles, electric appliances and airplane parts soared, according to Trade and Export Promotion Centre statistics.
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With the swelling current account deficit eating into country’s foreign exchange reserves, the government is exploring measures, including quantitative import restriction on some items, to curb the ever-increasing imports.
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Nepal’s trade deficit ballooned 40.3 percent in the first four months of the fiscal year as rising imports of fuel and agricultural goods continue to dent the economy.
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Nepal’s trade deficit swelled to Rs349.84 billion in the first quarter of the current fiscal year. The figure represents a 46 percent increase in the negative trade balance compared to the same period in 2017-18.  
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The government has decided to raise the import quota of gold by additional 5 kg per day to 25 kg, raising alarm bells about the country’s trade deficit which has ballooned out of control due to excessive rise in import bills.
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