ECONOMY  

Kathmandu Tuesday December 12, 2000 Mangshir 27,  2057.

Trade deficit narrows, export registers robust growth

Prem Khanal

KATHMANDU, Dec 11 - Nepal’s total export has almost doubled within three years and the first quarterly review of foreign trade statistics for the current year heralds further consolidation of the export trend.

Nepal Rastra Bank’s figure show that the county’s export- the major foreign currency earner- has increased by 41 percent. Robust export accompanied by comparatively smaller growth in the imports has narrowed trade deficit, showing a healthy sign in the economy.

According to the NRB figures the exports touched Rs 13.5 billion up from Rs 10.83 billion last year. Similarly, the imports too surged up, albeit marginally and touched Rs 25.53 billion from Rs 23.75 billion compressing the trade deficit by 7 percent to remain at Rs 12.01 billion against Rs 13 billion recorded a year ago.

The total foreign trade, during the period, was registered at Rs 39.06 billion, which is 13 percent higher for the corresponding period last year. It increased by 21.6 percent with India and 7.3 percent with the third countries.

While analyzing sectoral composition of the total foreign trade during last two-years, the contribution of both India and the third countries have declined. During the first quarter 1999/2000, Indian participation had increased by over 55 percent, however, such participation, during the same period of current year, decreased and remained at 21 percent. Similarly, the participation of other countries also witnessed similar trend to touch 7.3 percent from 31.6 percent.

However, the total export to India reregistered an impressive growth of over 41 percent to reach Rs 6 billion. Among the goods exported to India, Pasmina, for the first time, made an impressive emergence to secure first position by pushing down vegetable ghee to the second slot. During the period, Pasmina products worth Rs 1.15 billion, was exported to India while registering a majestic growth of over 137 percent, vegetable ghee stood as the second largest export to India with Rs 814 million. Similarly, with a decline of over 14 percent, toothpaste continued to maintain third position in the export list to India with Rs 467 million. The export of thread emerged as the fourth largest exportable items with an impressive growth of 95 percent to touch Rs 415 million. Among the major traditional commodities, jute products slipped from its previous third to fifth position inspite of a growth of 29.7 percent worth Rs 342 million.

Despite declines in the major overseas exportable items, export to third countries, during the review period, also registered a growth of 14 percent. Ready-made garments continued to maintain the number one position with the export volume of Rs 2.5 billion, which is a decline of over 23 percent as compared to the same period last year. Similarly with the decrease of 18 percent, woolen carpets, Nepal’s largest exportable goods until last year, also remained in second position with Rs 2.19 billion. Pasmina products, with an export value of Rs 1.88 billion emerged as the third largest overseas export. Similarly, with the impressive bounces of 534 and 353 percents, tanned skin and pulses were placed at fourth and fifth positions with export values of Rs 149 and Rs 136 millions respectively.

In the import front, imports from India, during the period, increased by 12.7 percent to touch Rs 10.67 billion compared to the same period last year. Among the major imports from India, vehicles and spare parts topped the list with import value of Rs 1.48 billion, which was a bounce of 91 percent. Cotton fabrics secured the second position with an increase of over 65 percent to touch Rs 1.07 billion. Despite a decline of almost 20 percent, imports of medicine ranked in third position with Rs 682 million while with an impressive growth of over 55 percent, chemicals maintained fourth position with the import value of Rs 611 million.

During the first quarter of the current fiscal year, petroleum products topped the list by pushing down gold to second position among the third country imports. During the period, petroleum products worth of Rs 2015 billion was imported, which was 27 percent more than last year’s import. Gold import registered a decline of over 32 percent and confined to Rs 1.45 billion whereas such import during the like period of 1999/2000 has registered a robust growth of 112 percent and touched Rs 2.15 billion.

Similarly, import of threads, basic raw materials for the garment industry, demonstrated a growth of 13 percent to touch Rs 1.32 billion, while with a marginal decline, the import of other machinery and parts touched Rs 831 million and became the fourth largest import commodity from countries other than India.