Despite the government’s earnest efforts to boost export trade, the data on Nepal’s exports in the last fiscal year proved to be disheartening.
During the fiscal year 2079-80 BS (2022-23), Nepal witnessed a substantial 21.4 percent decline in its export rate.
The Ministry of Industry, Commerce, and Supplies reported that Nepal’s total commodity exports amounted to Rs 157 billion in the previous fiscal year.
In a recent meeting of the Industry, Commerce, Labour, and Consumers’ Welfare Committee under the House of Representatives, Commerce and Supplies Secretary Madhu Kumar Marasini disclosed that total imports also experienced a significant decrease of 16.1 percent, with Nepal importing commodities worth Rs 1,611 billion during the same period.
The overall foreign trade of Nepal also took a hit, recording a 16.6 percent decrease compared to the previous year, with total foreign trade amounting to Rs 1,786 billion.
Analysis of the primary data from the last fiscal year revealed that exports constituted a mere 8.9 percent of total trade, while imports dominated with a staggering 91 percent share. This reflects the concerning 21.4 percent drop in Nepal’s exports.
In the fiscal year 2078-79 BS (2021-22), the export-import ratio was 1:9.6, but it further deteriorated to 1:10 in the last fiscal year.
Efforts are being made to address the mounting trade deficit through discussions and consultations with relevant stakeholders, focusing on effective implementation of the National Plan of Action on Trade Deficit, 2079 BS, and the Nepal Trade Integration Strategy, 2080 BS.
A significant step towards promoting export trade was taken during a Board of Trade meeting chaired by the Industry Minister, where crucial decisions were made.