The trade deficit during the first 10 months of the last Nepali fiscal year (July 16, 2005-July 15, 2006) rose by 25.3 percent compared to the same period during the previous Nepali fiscal year, Nepal Rastra Bank (NRB) said Friday.

"Due to a higher rate of growth in imports against a slower pace of exports, trade deficit during the first 10 months of the last Nepali fiscal year 2005-06 rose by 25.3 percent," said macroeconomic situation report released by NRB, the central bank of the country.

Nepal had registered a moderate increase of 9.8 percent in trade deficit during the same period in 2004-05.

Total exports during the review period increased at a slower pace of 4.6 percent, while total imports increased substantially by 17 percent.

Exports during the same period in 2004-05 had recorded an increase of 6.8 percent and imports had a growth of 8.6 percent.

Of the total exports, exports to India rose only by 8.7 percent in 2005-06 compared to an encouraging growth of 23.9 percent in the same period of 2004-05.

Source: Xinhua