KATHAMNDU, MAR 13 - Merchandise exports that saw continuous slump during the first six months of the fiscal year seem to be gaining momentum.

Data of November-December and Dece-mber-January of the current fiscal year 2009/10 show exports to have grown by 9.2 percent and 37.5 percent.

Exports in the last six months however register a decline by 12.1 percent contrary to a growth posted during the same period last year, according to the latest report of Nepal Rastra Bank (NRB) on the country’s macro-economic situation.

The merchandise exports declined continuously for three consecutive months starting from month of August-September to October-November of 2009

On the other hand, the merchandise imports registered a growth of 40.8 percent in the review period compared to a growth of 25.9 percent in the same period the previous year. This led to Balance of Payment (BoP) deficit of Rs. 19.79 billion contrary to a surplus of Rs. 28.53 billion last year during the period. The trade deficit also grew by 60.7 percent to Rs. 153.06 billion in six months against the growth of 27.5 percent during the same period last year.

The central bank had attributed soaring gold imports as the major factor behind trade and BoP deficit and imposed strict restriction on gold import. NRB is mulling to hike duty on gold imports as well.

The country had imported gold worth Rs. 33.6 billion in six months this year against Rs. 8.76 billion during the same period last year.

The higher expansion of loans and advances against the deposits mobilisation increased the credit-deposit (C/D) ratio to 89.3 percent in Mid-January 2010 against 81.2 percent in mid-July 2009. It is considered well if the C/D ratio remains below 80 percent.

In the review period, the loans and advances of banks grew by 16.6 percent (Rs. 67.0 billion) against the deposit growth of 4.7 percent (Rs. 25.9 billion).

This caused a decline in the liquidity-deposit ratio to 28.6 percent in mid-January 2010 from 24.2 percent in mid-July 2009.

Posted on: 2010-03-14 12:58

Post Your Comment

Please note that all the fields marked * are mandatory.
* Full Name
* Address
* Email Address
* Comment
* Captcha	Get another CAPTCHA code
Note:	Comments containing abusive words or slander shall not be published.