Kathmandu: Nepal recorded a trade deficit of Rs 861.38 billion in the first seven months of the current fiscal year, according to data released by the Department of Customs. The country’s total foreign trade during this period stood at Rs 1,115.79 billion, with imports continuing to far exceed exports.
Between the start of the fiscal year and the end of Magh, Nepal imported goods worth Rs 988.58 billion, while exports totaled Rs 127.20 billion. Despite a 46.50% increase in exports compared to the same period last year, imports also rose by 10.09%, resulting in a 6.20% widening of the trade deficit. The imbalance in trade remains a concern, with imports making up 88.60% of total foreign trade, while exports account for only 11.40%.
Nepal’s largest trade deficit was recorded with India, amounting to Rs 498.34 billion. Imports from India reached Rs 596.35 billion, whereas exports to the southern neighbor stood at Rs 98.75 billion. The country also faced a significant trade deficit with China, importing Rs 192.45 billion worth of goods while exporting only Rs 2 billion, leading to a shortfall of Rs 190.44 billion. Other countries contributing to Nepal’s trade deficit include Argentina, the UAE, and Australia.
Despite the overall deficit, Nepal managed to record a trade surplus with 35 nations, including Afghanistan, Denmark, Russia, Austria, Norway, and the Maldives. Nepal’s trade with Afghanistan, for instance, showed exports of Rs 494.5 million against imports of just Rs 12.4 million.
Petroleum products remain Nepal’s most expensive import item, contributing significantly to the growing trade deficit. On the export front, soybean oil continues to be the country’s leading export product. The persistent trade imbalance highlights Nepal’s heavy reliance on imports, raising concerns over economic sustainability and the need for policies that encourage domestic production and export diversification.