Nepal withstood a trade deficit of Rs 587.46 billion in the first four months of the current fiscal year, a drop of 19.79 percent from the amount during the same period last year.
According to the Department of Customs, the country faced a trade deficit of Rs 732.41 billion. The negative trade balance declined by Rs 144.95 billion during the review period, mainly due to a heavy fall in import expenses.
Over the period, imports drop by Rs 117.60 billion (18.08 percent) to Rs 532.69 billion. The drop in the country’s expense figure was due to the government’s restrictions on imports.
Citing a pressure of declining foreign currency reserves, the government had imposed restrictions on imports of luxury items including tobacco products, diamonds, automobiles and TV sets, among others, in April. The restrictions are still in place in a number of these goods.
The export earnings, however, dropped by one-third to Rs 54.77 billion. Edible oils, carpet and textile-related products were among the major export items that gave the country a notable amount of earnings during the review period.
