Nepal's trade deficit continues to widen, as it crossed 70 billion Nepali rupees (around 1.1 billion U.S. dollars) during the first nine months of the current fiscal year 2006-07, local newspaper The Himalayan Times reported Monday.

According to the macroeconomic situation report released by Nepal Rastra Bank (NRB), Nepal's central bank, on Sunday, total exports fell by 2.9 percent in the first nine months, while imports registered a growth of 7.4 percent.

The responsible factors for the dismal performance of the export sector included the unfriendly investment climate, worsening security situation, load shedding and the southern Nepal 's Terai general strikes.

The decline in exports to India was ascribed to the decline in exports of polyester yarn, cattle-feed, plastic utensils, etc. The decline in exports to other countries was due to the decline in the export of ready-made garments, pashmina, woolen carpets, and handicrafts and tanned skin.

The rise in total imports during the period was attributed to the rise in imports of vehicles and spare parts, petroleum products, cold rolled sheet in coil, electrical equipment and cement, among others, from India as well as a rise in imports of crude palm oil, computer parts, chemical fertilizer, zinc ingot and medicine, among others, from other countries.

Source: Xinhua