Kathmandu
Nepal has broken its 15-month streak of declining imports in October, reflecting a slight resurgence in economic activities after months of sluggish performance, according to government data. During the first quarter of the current fiscal year (2023-24), Nepal imported goods valued at 407.75 billion Nepali rupees (approximately 3.07 billion US dollars), marking a year-on-year increase of 1.69 percent, as reported by the Department of Customs. Notably, the import of iron and steel, vehicles, machinery, and diesel exhibited growth during this period, with petroleum products remaining the country’s largest import category. The decline in Nepal’s overall imports began at the outset of the previous fiscal year (2022-23), with a 16 percent drop recorded over the course of the year. Punya Bikram Khadka, Information Officer at the Department of Customs, attributed the recent uptick in imports to increased economic activity in anticipation of the Dashain festival, a major celebration in the Nepali Hindu calendar. Unlike the previous year, certain import restrictions have been lifted, and an influx of remittances in recent months has bolstered the demand for imported goods. Nepal initiated import curbs in February 2022 due to a burgeoning balance of payments deficit and dwindling foreign exchange reserves. A complete ban on the import of specific items, including vehicles, alcohol, high-end mobile phones, and televisions, was imposed in April last year but was lifted in December after it had a severe impact on government revenues. Although these restrictive measures have been eased, Nepal’s overall imports have remained subdued due to sluggish economic activity. The World Bank’s Nepal Development Update report, released in early October, projected a meager 1.9 percent economic growth for Nepal in 2022-23, with a forecast of 3.9 percent growth in 2023-24.
