Nepal suffers trade deficit with 127 of its 164 trading partners

By A Staff Reporter,Kathmandu, Aug. 31: Nepal conducted foreign trade with more than 164 countries across the world in the last fiscal year 2024/25. Nepal suffers deficits with most of these countries.

According to trade statistics of the Department of Customs, Nepal enjoyed trade surplus only with 37 countries of its 164 trade partners in the last fiscal year 2024/25.

The country suffered heavy trade deficits with its major trading partners, resulting in a total trade deficit of Rs. 1,527.09 billion in the last fiscal year. 

Despite the challenges, Nepal’s exports grew significantly, registering an 81.80 per cent increase over the previous fiscal year to reach Rs. 277.03 billion. 

However, the surge in exports was overshadowed by the volume of imports, highlighting structural weaknesses in domestic production and limited export diversification. Highest trade surplus with Afghanistan of Rs. 668 million

According to the report, the country recorded trade surplus with Afghanistan, Angola, Aruba, Austria, Bahamas, Bermuda, Bosnia and Herzegovina, Cayman Island, Chad, Colombia, Croatia, Denmark, Ecuador and Fiji.

Likewise, Nepal had trade surplus with Iceland, Jamaica, Lao People's Democratic Republic, Latvia, Lebanon, Libyan Arab Jamahiriya, Maldives, Mali, Malta, Mauritius, Morocco, New Caledonia, Norway, Papua New Guinea, Romania, Russia Federation, Serbia (Europe), Seychelles, Sudan, Tajikistan, Uruguay, Yemen and Zambia. 

But the surplus amount remained too low to contain the widening trade deficit of the country.

Nepal made higher trade surplus with Afghanistan followed by Denmark. In the last fiscal year, Nepal made a trade surplus of Rs. 686 million with Afghanistan and Rs. 338 million with Denmark.

In the last fiscal year, Nepal exported goods worth Rs. 770 million to Afghanistan and imported goods worth Rs. 84 million.  Nepal exported goods worth Rs. 701 million to Denmark while imported goods worth Rs. 362 million during the review period. 

Similarly, Nepal made a trade surplus with Russian Federation of Rs. 77 million, with Romania of Rs. 65 million, with Austria of Rs. 57 million, with Lao People's Democratic Republic of Rs. 37 million, with Iceland of Rs. 28 million, with Latvia of Rs. 17 million and with New Caledonia of Rs. 15million.

The country made a trade surplus with Malta at Rs. 16 million, with Croatia at Rs. 11 million, and with Yemen at Rs. 12 million during the review year. In the last fiscal year, Nepal also exported goods exclusively (with no recorded imports) to countries such as Angola, Aruba, Bahamas, Cayman Islands, Chad, Fiji, Libyan Arab Jamahiriya, and Yemen, resulting in modest trade surpluses.

Trade imbalance with India Rs. 846.51 billion During the review period, Nepal’s highest trade deficit was with its neighbours, India and China, the two biggest trading partners. Nepal’s trade deficit with India reached Rs. 846.51 billion while with China it reached Rs. 338.47 billion.

India is the largest trading partner of Nepal with more than 60 per cent of the country’s trade undertaken with the southern neighbour.

The statistics showed that more than 80 per cent of Nepal’s exports have been directed to India and about 60 per cent of Nepal’s total imports have been from India.

During the review period, Nepal exported goods worth Rs. 224.68 billion to India while goods worth Rs. 1,071.19 billion were imported from India. 

Similarly, goods worth Rs. 341.10 billion were imported while goods only worth Rs. 2.63 billion were exported to China. 

Nepal has the third biggest trade deficit with Argentina at Rs. 99.29 billion. The country imported goods worth Rs. 99.30 billion from Argentina while goods only worth Rs. 3.3 million were exported to Argentina in the last fiscal year.

The county has trade deficit with Ukraine at Rs. 24.90 billion, with United Arab Emirates at Rs. 22.31, with Australia at Rs. 17.94 billion, with Indonesia at Rs. 14.91 billion, with Thailand at Rs. 14.75 billion, with Malaysia at Rs. 13.88 billion and with Brazil at Rs. 11.80 billion, according to the Department.

Similarly, Nepal had a trade deficit with Qatar at Rs. 9.02 billion, with France at Rs. 8.90 billion, with Saudi Arabia at Rs. 8.19 billion, with United States of America at Rs. 7.64 billion, with Vietnam at Rs. 6.83 billion, with Republic of Korea at Rs. 6.36 billion and with Singapore at Rs. 6.04 billon in the last fiscal year.

The country had a trade deficit with Turkey at Rs. 4.42 billion, with United Kingdom at Rs. 3.24 billion, with Myanmar at Rs. 2.7 billion, with Germany at Rs. 2.2 billion, with Spain at Rs. 1.5 billion and with Poland at Rs. 1.2 billion.