Trade deficit increases to over Rs 861 billion

KATHMANDU, FEBRUARY 23: Nepal recorded a foreign trade deficit of Rs 861.38 billion, totalling Rs 1,115.79 billion, in the first seven months of the current fiscal year.

According to data from the Department of Customs, Nepal's imports during this period stood at Rs 988.58 billion, while exports amounted to Rs 127.20 billion. Compared to the same period last year, exports increased by 46.50 percent, while imports rose by 10.09 percent. Overall, foreign trade grew by 13.30 percent.

Despite this growth, the trade deficit widened by 6.20 percent from mid-July to mid-February of 2024/25. Imports accounted for 88.60 percent of total trade, while exports made up just 11.40 percent.

India remained Nepal’s largest trade partner, with a trade deficit of Rs 498.34 billion from mid-July to mid-February of 2024/25. Nepal imported goods worth Rs 596.35 billion from India while exporting only Rs 98.75 billion.

Similarly, Nepal faced a trade deficit of Rs 190.44 billion with China, importing goods worth Rs 192.45 billion while exporting only Rs 2 billion. Other countries where Nepal experienced trade losses include Argentina, the UAE, and Australia.

On the positive side, Nepal recorded trade surpluses with 35 countries, including Afghanistan during the review period Imports from Afghanistan stood at Rs 12.4 million, while exports reached Rs 494.5 million. Other countries facing trade deficits with Nepal include Denmark, Russia, Austria, Norway, and the Maldives.

The Department of Customs highlighted that a significant portion of Nepal’s import expenses goes toward petroleum products, while soybean oil remains the country’s top export.