Nepal Rastra Bank said Nepali exports grew by 42.4 percent in the first ten months of fiscal year 1999/00 to Rs 41.7 billion, up from Rs 29.3 billion in the corresponding period last year. Imports grew by 27.3 percent to Rs 78.8 billion ($1.24 billion). The total trade deficit reached Rs. 46.1 billion. The deficit with India grew by 5.8 percent to Rs 15.7 billion while that with other trading partners grew by 16.5 percent to reach Rs 30.3 billion. The central bank said that export earnings could sustain 47.5% of imports. The total foreign reserve in mid-June (11 months) was Rs 91.76 billion, which the Bank said was enough to sustain imports for 10 and a half months.

The figures for ten months (up to mid-May) show that readymade garments did the best in the overseas export category (Rs 11.8 billion) by surpassing the 12-month total of last year (Rs 9.70 billion). Vanaspati ghee?hydrogenated vegetable oil?still tops the export to India even though there was a 25.8 percent decline compared to the 10-month total of 1998/99 (Rs 2.87 billion). Woollen carpet exports remained at about the same level at Rs 8.18 billion.