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Nepal's decade-long Trade Deficit with Bangladesh

By News   Desk

Nepal has been grappling with a trade deficit with Bangladesh for over a decade now, as reported by the Mechi Customs Office. In the initial eight months of the current fiscal year, the country marked a trade deficit of approximately Rs 2.43 billion with its southern neighbor.

The shortest and most convenient trade route between Nepal and Bangladesh spans 52 kilometers, starting from the eastern checkpoint at Kakadbhitta and ending at Bangladesh's Banglabandha dry port through Fulbari, India. This route serves as a vital artery for commerce between the two nations.

Despite being landlocked, Nepal enjoys direct transit access, thanks to the trilateral agreement between Nepal, India, and Bangladesh. However, trade volume via air routes remains minimal between the two countries.

Ram Prasad Regmi, Chief Customs Officer at Mechi Customs Office, highlighted that Nepal has struggled to balance its trade with Bangladesh in recent years. Import data from Bangladesh during the first eight months of the current fiscal year amounted to Rs 2.59 billion, while exports to Bangladesh stood at Rs 165.64 million.

Customs records reveal a persistent trade deficit with Bangladesh over the years, with deficits ranging from Rs 1.40 billion to Rs 10.38 billion in various fiscal years. This ongoing trade imbalance poses significant challenges for Nepal's economy.