Trade With Caution

After the adaptation of liberal foreign trade policy, Nepal's foreign trade is expanding continuously. Currently, the country makes annual foreign trade of around Rs. 2,120 billion with more than 200 countries of the world. Despite the increase in the volume of foreign trade and number of trading partners, the country has failed to enjoy the benefits of foreign trade as the proportion of the export to the total trade volume is very nominal. In last one decade, the country's trade deficit is widening continuously posing a threat to external sector instability. As per the annual data published by the Nepal Rastra Bank, the volume of Nepal's export stood only at Rs. 200 billion in fiscal year 2021/22 as contrary to the import of Rs. 1920 billion.