Nepal's Intra-SAARC Trade Up By 8.2 Percent

November 14, 2007 6:15 a.m. EST

Kathmandu, Nepal (AHN) - The country's trade with the seven other South Asian countries including Afghanistan grew by 8.2 per cent in the fiscal year 2006-07, according to a government report, released on Tuesday.

Nepal's trade growth in the South Asian Association For Regional Cooperation (SAARC) region for the year was much slower compared to the previous fiscal year, the Trade and Export Promotion Centre (TEPC) says in its the annual report. The trade volume had increased by about 16 per cent in the previous fiscal 2005-06.

"This situation emerged mainly because of internal reasons, such as deterioration in the security situation, erosion of industrial environment, labor stir and the tarai unrest," Dinesh Chandra Gupta, Executive Director of TEPC was quoted by the ekantipue.com, a local news portal, as saying.

Gupta also said 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.

Nepal's total exports to the SAARC region grew by 3.56 per cent and reached US$ 676.40 million (Rs 42.85 billion) during the fiscal, whereas imports from SAARC grew by 10 per cent to $1.87 billion (Rs 118.37 billion).

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

Nepal exports to India during the year totaled $660.93 (Rs 41.87 billion), making India the largest market for Nepali goods in fiscal 2006-07.

It was followed by Bangladesh (with exports valued at $8.23 million (Rs 521.49 million), Bhutan $4.90 million (Rs 310.96 million) and Pakistan $2.00 million (Rs 126.94 million).

During the period, the country imported goods worth $1.86 billion (Rs 117.74 billion) from India. With Nepal's imports totaling $4.52 million (Rs 286.47 million), Bangladesh was the second biggest exporting country to Nepal among SAARC members.