Nepal registers deficit with 113 of 142 trading partners

By A Staff Reporter,Kathmandu, Dec. 9: Nepal recorded a trade deficit with 113 out of its 142 international trading partners during the first four months of the current fiscal year 2025/26.

The country’s overall trade deficit stood at Rs. 515.95 billion during the review period, driven by persistently high imports and limited growth in export-oriented production. 

While Nepal maintained trade surplus with 29 countries, the amounts were too small to significantly reduce the widening deficit, according to the trade statistics from the Department of Customs.

During the period, Nepal’s exports rose by 77.51 per cent to Rs. 93.49 billion, while imports increased by 18.71 per cent to Rs. 609.45 billion.

Nepal’s highest trade deficit was with its neighbours, India and China, the two largest trading partners.

Nepal’s trade deficit with India reached Rs. 261.41 billion, while the deficit with China stood at Rs. 132.27 billion.

During the period, Nepal imported goods worth Rs. 337.92 billion from India, while goods worth Rs. 76.50 billion were exported to India.

India is Nepal’s largest trading partner, accounting for 60 per cent of the country’s total trade.

Statistics show that more than 81 per cent of Nepal’s exports went to India, while about 56 per cent of Nepal’s imports came from India.

Similarly, goods worth Rs. 132.56 billion were imported from China, while goods only worth Rs. 299 million were exported to China during the review period.

Nepal has the third-largest trade deficit with Argentina at Rs. 34.723 billion. During the first four months of the current fiscal year, Nepal imported goods worth Rs. 34.724 billion from Argentina, while exporting goods worth only Rs. 588,000.

The country has a trade deficit with the United Arab Emirates amounting to Rs. 21.56 billion. Nepal imported goods worth Rs. 22.22 billion from the UAE while exporting goods worth only Rs. 666 million.

The country also has trade deficits with Thailand at Rs. 5.96 billion, Brazil at Rs. 4.82 billion, Malaysia at Rs. 3.77 billion, Australia at Rs. 3.25 billion, Qatar at Rs. 3 billion, the United States at Rs. 2.9 billion, and Canada at Rs. 2.52 billion.

Similarly, Nepal recorded trade deficits with Japan at Rs. 2.3 billion, Bangladesh at Rs. 2.27 billion, the Russian Federation at Rs. 2.10 billion, Hong Kong at Rs. 2.03 billion, Singapore at Rs. 1.95 billion, Saudi Arabia at Rs. 1.89 billion, and Viet Nam at Rs. 1.89 billion.

The country also incurred trade deficits with the Republic of Korea at Rs. 1.82 billion, France at Rs. 1.81 billion, Ukraine at Rs. 1.52 billion, Paraguay at Rs. 1.26 billion, and Italy at Rs. 1.11 billion during the review period.

Highest trading surplus with Denmark 

Despite the overall deficit, Nepal recorded trade surpluses with 29 countries, including American Samoa, the Bahamas, the Cayman Islands, Colombia, Congo, Cyprus, Denmark, Ecuador, Fiji, Georgia, Iceland, Iraq, Jamaica, Kyrgyzstan, the Lao People’s Democratic Republic, Lebanon, and the Maldives.

Nepal also enjoyed surpluses with Mali, Malta, New Caledonia, Niger, Panama, Romania, Seychelles, Somalia, Sweden, the Syrian Arab Republic, the Turks and Caicos Islands, and Uruguay.

Denmark emerged as Nepal’s top surplus partner, with a surplus of Rs. 274 million in the first four months. Nepal exported goods worth Rs. 324 million to Denmark while importing goods worth Rs. 49 million.

Romania ranked second, with a trade surplus of Rs. 67 million. During the same period, Nepal exported goods worth Rs. 81 million to Romania and imported goods worth Rs. 13 million.

Additional trade surpluses were recorded with Sweden (Rs. 25 million), Niger (Rs. 17 million), Fiji (Rs. 9 million), and Colombia (Rs. 8.5 million.