Speaking at a programme entitled “National economy and increasing trade deficit” in the capital on Sunday, Mahat said the lack of investment friendly environment and economic regulation are also main cause behind increase in trade deficit.
As Nepali market has not been able to compete in the international market, the trade deficit has been increasing in the country, he added.
Due to high production cost, the country’s exports have been adversely affected, said Mahat. Exports play vital role in decreasing trade deficit.
On the occasion, chief economic advisor at the Finance Ministry Chiranjeevi Nepal opined that the development in the energy sector would reduce the production costs and trade deficit.
As the government has increased the budget allocation in the agriculture sector, Nepal said that the trade deficit will go down gradually.
