Merchandise imports, in the seven-month period through mid-February, went up 16.9 percent to Rs 254.95 billion, whereas exports rose by 13.4 percent to mere Rs 42.59 billion.[break]
Since Nepal conducts much of its trade with India, imports from the southern neighbor increased by 11.6 percent during the review period - although lower than the growth of 24.2 percent recorded in the same period last fiscal year. Imports from other countries, which mainly comprised gold, crude soybean oil, silver, chemical fertilizers and other machinery and parts, rose by 28.1 percent, as against a decline of 29.5 percent recorded in the last fiscal year.
In contrast, volume of Nepal´s export to India and other countries were too small despite impressive growth rates. Exports to India, for instance, went up by 13 percent in the seven-month period, as Nepal was able to ferry more of zinc sheet, textiles, polyester yarn, GI pipe and copper wire rod to the country during that period. Exports to other countries also rose by 14.3 percent as Nepali woolen carpets, readymade garments, pashmina, and paper and paper products were well received in the international market than that of last year.
Despite hike in trade deficit, the overall balance of payment (BoP) situation recorded its highest ever surplus of Rs 75.09 billion during the seven-month period of this fiscal year, as against a deficit of Rs 13.04 billion in the same period last year. This was mainly because of greater inflow of remittance along with hike in tourism income, according to NRB.
Workers´ remittance, in the review period, surged by 35.5 percent to Rs 188.19 billion compared to a growth of 11.7 percent in the same period last year. Similarly, tourism income rose by 28.4 percent in the first seven months in contrast to a decline of 21.1 percent last year.
Inflation stands at 7pc
Consumer prices went up by seven percent in mid-February 2012 as food became more expensive and transport fares saw a hike.
NRB report says prices of milk products and eggs surged by 17.6 percent, while prices of ghee and oil went up by 15.2 percent in the month. Likewise, prices of fruits went up by 14.1 percent and costs at restaurant and hotel increased by 10.5 percent.
In non-food sector, prices of clothes and footwear rose by 15.2 percent, prices of furniture and household equipment were 13.6 percent dearer and transport fares were 18.5 percent costlier in February.
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