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KATHMANDU, June 20: Encouraging signs have begun to emerge in Nepal’s economy, with trade data from the first 11 months of the current Fiscal Year (FY) 2024/25 showing a notable improvement. Officials and private sector representatives say the recent upturn in both imports and exports signals a revival of economic activity after years of sluggish growth, mainly after the COVID-19 outbreak in early 2020.
According to the Department of Customs, Nepal’s total imports reached Rs 1,644.8 billion, while exports stood at Rs 247.57 billion during the review period. Compared to the same period last FY, imports increased by 13 percent and exports by nearly 78 percent — a substantial growth that reflects rising domestic demand and production capacity.
The overall foreign trade volume surged from Rs 1,593 billion last year to more than Rs 1,891 billion this year.
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Officials say the rise in imports reflects increased consumption and investment across sectors, including infrastructure development. They described it as an indicator of growing purchasing power and broader economic engagement. For example, import figures in the month of Jestha (mid-May-mid-June) alone hit Rs 170 billion — the highest monthly total of the FY.
Officials say the growth in imports typically signals heightened economic activity and improving consumer confidence. It also reflects capital expenditure on development projects.
The private sector has welcomed the sharp rise in exports as a step in the right direction. However, officials cautioned that much of the export growth is attributed to re-exported goods, such as soybean and sunflower oil processed from imported raw materials, rather than a surge in locally manufactured or agricultural products.
Still, export figures for traditional Nepali goods — such as carpets, cardamom, and rolled iron and steel — remain strong, suggesting a stable base for further growth in domestic industries. Private sector leaders said Nepali industries are gradually expanding their capacity to meet growing international demand. They also credited recent government initiatives aimed at promoting export-oriented industries for contributing to the progress.
Customs officials added that measures such as improved border surveillance, better use of technology, and more efficient customs procedures have contributed to the growth in trade. They noted that curbing cross-border smuggling remains a priority to ensure continued economic gains.
The recent trends clearly show that the country's economy is on a path toward recovery with improved trade data. However, stakeholders argue that sustaining export growth is key to long-term economic stability as the trade deficit is still high.
