Iron and steel have surpassed petroleum products to become Nepal' s largest imports in the first four months of fiscal year 20010/11 beginning in mid-July, recording a growth of 40.6 percent to 18.99 billion Nepali rupees (some 260 million U.S. dollars).

According to Monday's Republica daily, the country has imported iron and steel worth 33.89 billion rupees (some 264 million dollars) and petroleum products worth 55.66 billion rupees (some 762 million dollars) in 2009/10.

The big rise in imports of iron and steel was recorded at a time when the growth of real estate sector the major consumers of iron products such as iron wire and rods has been slowing for the last one year due to tightening of loan flow on realty sector.

Imports of petroleum products, which covered more than 15 percent worth of the total imports, dropped by 6.8 percent to 17. 85 billion rupees (some 245 million dollars) during the first four months compared to 19.17 billion rupees (some 262 million dollars) during the corresponding period last year.

Yaksha Dhoj Karki, president of Federation of Contractors' Associations of Nepal, said massive construction activities carried out by both the government and the private sector have pushed up the demand for steel, leading to huge rise in imports.

"More than 40 percent of the total constructions activities in a year are carried out between January and March. Huge imports of iron and steel were made in advance to cater to the demand during the peak season," Karki said.