Nepal’s foreign trade recorded a dismal performance during the first nine months of 2006-07. The deteriorating security situation and a power crisis are among the reasons responsible, according to a latest report by the Nepal Rastra Bank.

During the period, the country’s total exports fell by 2.9% whereas during the same period last year it had risen by 9.1%, says the report.

Exports to India fell by 2.3% and to other countries by 4.2%. Total imports went up by just 7.4%, as against 21% in the same period last year. Of the country’s total imports, imports from India increased by 9.5% and those from other countries rose by 4%.

Nepal’s remittance receipt grew at a slower rate, totalling Rs 72.39 billion. This was due to a slowdown in the trend of workers going abroad as well as lower wage rates abroad. Nevertheless, elevated levels of remittance and expansion in the services sector contributed to the higher level of growth in time deposits (11.2%) during the review period.

Meanwhile, prices of food and beverages increased by 7.9%, triggered mostly by a rise in the price of spices, meat, fish, eggs, oil and ghee. 

July 13, 2007