Nepal in trade deficit with Bangladesh for over one decade

Nepal has been facing a trade deficit with Bangladesh for the past decade.

According to the Mechi Customs Office, there was a trade deficit of around Rs 2 billion 431 million in the first eight months of the current fiscal year 2080/81 BS.

The 52-km transit route from the eastern checkpoint at Kakadbhitta to Bangladesh’s Banglabandha dry port via Fulbari, India has been used as the shortest and easiest route for trade between Nepal and Bangladesh.

As a landlocked country, Nepal has access to a direct transit route following the trilateral agreement between Nepal, India, and Bangladesh. It’s worth noting that the volume of trade through the air route between the two countries is nominal.

Ram Prasad Regmi, Chief Customs Officer at Mechi Customs Office, stated that Nepal has not been able to balance trade with Bangladesh since the fiscal year 2071/72 BS.

According to the Mechi Customs Office, goods worth Rs 2.59 billion were imported from Bangladesh in the first eight months of the current fiscal year. In the same period, goods worth Rs 165.64 million were exported to Bangladesh.

Customs data reveals that Nepal suffered a trade deficit of Rs 5.18 billion with Bangladesh in FY 2079/80, Rs 10.38 billion in FY 2078/79, Rs 6.54 billion in FY 2077/78, Rs 4.24 billion in FY 2076/77, Rs 2.44 billion in FY 2075/76, Rs 2.44 billion in FY 2075/76, Rs 2.86 billion in FY 2073/74, and Rs 1.40 billion in FY 2071/72.