Nepal's trade in SAARC up by 8pc

Amounting to total Rs 161.22 billion in 2006/07, Nepal's trade in the SAARC (South Asian Association for Regional Cooperation) region has increased by 8.2 percent, says a government report released on Tuesday.

However, the government’s annual report of the Trade and Export Promotion Centre (TEPC) notes that the country's trade growth in the SAARC for the year was much slower compared to the previous fiscal year.

The trade growth had swelled by about 16 percent in 2005/06.

Dinesh Chandra Gupta, executive director of TEPC said, “This situation emerged mainly because of internal reasons, such as deterioration in the security situation, erosion of industrial environment, labour stir and the tarai unrest.” 

Gupta further said that the failure of the government to update its industrial and commerce policies and poor state of economic diplomacy also caused trade to slow down during the year.

According to the TEPC, Nepal's total exports to the SAARC region grew by a mere 3.56 percent and reached Rs 42.85 billion during the year, whereas imports from SAARC grew by 10 percent to Rs 118.37 billion.

Nepal's trade remained largely confined to India, which accounted for some 99 percent of Nepal's total trade in the region.

An official at TEPC said that the country's exports to India during the year totaled Rs 41.87 billion, making India the largest market for Nepali goods in 2006/07.

It was followed by Bangladesh (with exports valued at Rs 521.49 million), Bhutan (Rs 310.96 million) and Pakistan (Rs 126.94 million).

With Afghanistan importing Nepali goods worth Rs 12.46 million, it became the fifth largest customer for Nepal in South Asia. Exports to Sri Lanka remained at Rs 3.12 million and exports to Maldives totaled a mere Rs 1.02 million.

Likewise, the TEPC report says that Nepal imported goods worth Rs 117.74 billion from India in 2006/07. With Nepal's imports totaling Rs 286.47, Bangladesh was the second biggest exporting country to Nepal among SAARC members.

Nepal's imports from Pakistan totaled Rs 171.45 million, from Bhutan Rs 119.47 million and from Sri Lanka Rs 46.19 million. The country imported goods valued at Rs 6.18 million from Afghanistan, while its imports from the Maldives amounted to Rs 106,000.