Nepal's trade deficit crossed the $10 billion mark for the first time in the last fiscal year 2017-18, that concluded in mid-July, due to surging imports against sluggish exports, Nepal's Department of Customs (DoC) said on Monday.
According to the statistics released by the DoC, trade deficit of the Himalayan country reached $10.55 billion in fiscal 2017-18.
The deficit more than doubled in just five years. In fiscal 2013-14, Nepal witnessed trade deficit of $4.87 billion, Xinhua reported.
Nepal's imports almost doubled in the last five years while exports grew slightly during the same period, contributing to the widening trade deficit.
Nepal's imports surged to $11.28 billion in fiscal 2017-18 from $5.57 billion in fiscal 2013-14 while exports grew to $737.56 million from $703.14 million during the same period.
Former Nepali Commerce Secretary Purusottam Ojha said that Nepal's failure to produce adequate agriculture and manufacturing products was mainly responsible for the stagnant exports.
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"On the other hand, the government is more liberal on imports because it is heavily depended on import-driven revenues," he said.
Nepal has the largest trade deficit with India followed by China, the two largest trading partners and neighbours of the Himalayan country, according to the DoC.
--IANS
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