KATHMANDU, March 4: Despite the gloomy international economic outlook, exports from Nepal rose by 18.6 percent in the first half of the current fiscal year, 2008/09, as compared to a decline by 3.2 percent during the corresponding period last year.

Issuing a current macro economic situation report based on data for the first six months, Nepal Rastra Bank (NRB), the central bank, stated that exports to India -- the largest trading partner -- inched up by a meagre 0.9 percent.

Exports to the southern neighbour had nosedived 7.4 percent during the corresponding period the previous year.

However, the exports to other countries soared a huge 55.9 percent compared to an increase of 7.1 percent last year.

“The rise in the export of readymade garments, G.I. pipe, shoes and sandals, tooth paste and catechu was, to a large degree, attributed to the increase in exports to India,” the NRB statement said.

Likewise, the rapid increase in exports to other countries has been ascribed to a rise in the exports of pulses, woollen carpets, pashmina, readymade garments and herbs.

Total imports also went up by 23.6 percent compared to an increase of 14.2 percent in the corresponding period of the previous year.

Imports from India and other countries during the review period increased by 10.9 and 44.2 percents respectively over the same period the previous year.

An increase in the import from India of petroleum products, vehicles and spare parts, cold rolled sheet in coil, machinery and parts and medicine, among other items, and of gold, electrical goods, MS billet, machinery and parts and computers and parts among other things from other countries was largely responsible for such a rise.

In the first six months of the current fiscal, the overall balance of payment recorded a significant surplus of Rs. 28.5 billion compared to a deficit of Rs 2.0 billion in the corresponding period the previous year.

In mid-January 2009, gross foreign exchange reserves aggregated Rs. 254.5 billion, an upsurge by 19.7 percent compared to the level in mid-July 2008, according to the NRB statement.

http://www.myrepublica.com/portal/?action=news_details&news_id=2407