Page 178 - Social Studies 7

Trade Activities in Nepal

Nepal is a developing country. Although it is rich in natural resources it could
not utilize property. The trading of Nepal is mostly limited to the neighbouring
countries, mainly with India due to its open border from three sides. Nepal imports
goods from China too but comparatively it is less than India. Due to high import
and low export Nepal is facing trade deficit every year. The following data shows
the status of trade of Nepal with other SAARC countries.

Countries Import Export Surplus/Deficit
Afghanistan 88,610 206,033 117,,423

Bangladesh 4,016,618 497,222 3,519,439
Bhutan 463,454 142,432 321,022
India 480,897,395 38,080,443 442,816,352

The Maldives 350 50 300
Pakistan 267,274 43,490 223,784
Sri Lanka 203,582 3,343 200,784
(Amount is Rs. Thousand)

Source: Department of Customs 2015-16

The above data shows the trade deficit with India is very high in comparison to
the other SAARC member nations. In the last fiscal year, Nepal has trade deficit
worth Rs. 87,804.90 million as it imported goods worth Rs. 93,541.80 million
against exports of Rs. 15,736.90 million. Trade deficit with only India stood at
Rs. 491 billion in 2016-17.

Although, the government of Nepal has adopted open trade policy. It has ratified
the SAFTA and the SAFTA as a founding nation of the SAARC. Its main objective
is to promote international trade agreement with many countries and maintain
the trade relations. Moreover, to collect the revenue there are establishment of
customs offices at the main entry and exit points, borders and TIA. The custom
offices keep the records of imports and exports and collect the revenue.

Key Words

deficit : loss
surplus : profit

ratified : formally accepted, signed

Dynamic Social Studies and Population Education - Book VII 178