COMPOSITION AND DIRECTION OF FOREIGN TRADE OF NEPAL

Foreign trade is the exchange of capital, goods and services across the international borders or territories. The study is based on the objective to study and analyze the composition and direction of foreign trade of Nepal. The study can be referred as a descriptive study which uses the secondary sources of information like annual report of Nepal foreign trade statistics and Nepal Rastra Bank. The data obtained were analyzed using simple statistical tools like percent, ratio and trend analysis was done using Ms Excel. The study finds Nepal’s top ten major exported commodities of the fiscal year 2075/76 and 2076/77 in which refined palm oil was found to be top exported commodity in terms of quantity and value. Similarly among Nepal’s top ten major imported commodities of the fiscal year 2075/76 and 2076/77 diesel was found to be the top imported commodity in terms of quantity and value. Study further analyze the trend of foreign trade which shows the imbalance of foreign trade of Nepal. Trend analysis of export and import shows the increasing trend of import and very slow (near to zero) increase of export from fiscal year 1990/91 to 2019/2020. This has created the problem of rapidly increasing trade deficit over the period. To solve this problem Nepal’s trading structure both in terms of commodities and destinations should be improved.