Widening trade deficit and revenue shortfall add to economic woes
Summary
Nepal’s trade deficit widened by 34.71 percent in the first three months of the fiscal year as imports surged faster than exports. Government revenue also fell short of target, deepening concerns over fiscal stability and economic pressure.
Key Points
- Nepal’s trade deficit reached Rs 532.49 billion in the first three months of the current fiscal year, up 34.71 percent year-on-year.
- Imports rose to Rs 646 billion while exports reached Rs 114 billion, keeping the trade imbalance wide despite strong export growth.
- The government collected Rs 301 billion against a target of Rs 330 billion, falling short by Rs 29 billion.
- Economists say Nepal must boost domestic production, broaden the tax base and reduce import dependence to improve fiscal health.
