Nepal’s trade deficit widens by over 11% to Rs 1.098 trillion in eight months

KATHMANDU, March 22: Nepal’s trade deficit grew by 11.22 percent, reaching Rs 1.098 trillion in the first eight months of fiscal year 2025/26.

According to foreign trade statistics released by the Department of Customs on Sunday, the country’s total foreign trade stood at Rs 1.48 trillion, with a trade deficit of Rs 1.098 trillion. In the same period last fiscal year, the deficit was Rs 987.39 billion.

During the eight-month period, Nepal imported goods worth Rs 1.289 trillion and exported goods worth Rs 191.11 billion—a 12.54 percent increase in imports and a 20.83 percent rise in exports. Import expenses rose by Rs 144 billion, while export earnings increased by just Rs 32.94 billion.

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The trade deficit with India amounted to Rs 580 billion, with imports of Rs 735 billion and exports of Rs 155 billion. With China, Nepal imported Rs 278 billion worth of goods and exported Rs 14 billion, resulting in a deficit of Rs 264 billion. Other major contributors to the trade deficit included Argentina, the UAE, and Indonesia.

Nepal recorded trade surpluses with several countries, including Romania (Rs 510 million), Norway (Rs 35 million), and Iceland (Rs 27 million).

Petroleum products remained the top import category. Diesel imports totaled Rs 82.10 billion, accounting for 6.36 percent of total imports. Other key imports included petrol (Rs 43.89 billion), cooking gas (Rs 37.31 billion), unrefined soybean oil (Rs 51.86 billion), smartphones (Rs 29.93 billion), iron products (Rs 36.82 billion), gold (Rs 24 billion), and silver (Rs 19 billion).

Mobile phone imports saw a significant rise, increasing by over Rs 8 billion from Rs 21.91 billion in the same period last year. Of the more than 1.528 million units imported, 85 percent came from China.

On the export side, soybean oil was the top export, with shipments worth Rs 75.77 billion—a 58 percent increase from Rs 47.94 billion last year. Other major exports included cardamom (Rs 9.6 billion), carpets (Rs 6.6 billion), sunflower oil (Rs 6.3 billion), and palm oil (Rs 4.4 billion).