Trade volume totals Rs. 1941 billion

Kathmandu, May 23: Nepal’s foreign trade recorded strong growth during the first 10 months of the current fiscal year 2025/26, with both imports and exports rising by over 14 per cent compared to the same period last fiscal year. 

However, the country’s trade deficit also widened significantly, highlighting Nepal’s continued dependence on imported goods. According to trade statistics released by the Department of Customs, the country’s total foreign trade reached Rs. 1,941.60 billion during the review period. 

This is 14.75 per cent higher than the corresponding period last fiscal of Rs. 1,692.09 billion. During the review period, imports surged to Rs. 1,692.64 billion, marking a 14.82 per cent increase from Rs. 1,474.18 billion recorded a year earlier. 

Likewise, exports climbed by 14.25 per cent to Rs. 248.96 billion from Rs. 217.91 billion. Despite improved exports, a lower export volume relative to rising imports widened the trade deficit during the review period. 

The trade deficit expanded by 14.92 per cent to Rs. 1,443.67 billion, compared to Rs. 1,256.27 billion in the same period last fiscal year.

Trade structure remains import-driven

The data show the country’s trade structure continues to be heavily tilted toward imports.  During the review period, imports accounted for 87.18 per cent of total trade, while exports contributed only 12.82 per cent.

The import-to-export ratio stood at 6.79, meaning Nepal imported goods worth nearly Rs. 6.8 for every rupee earned through exports. The export-to-import ratio was 1:6.77 in the corresponding period last fiscal year.

Although exports registered healthy double-digit growth, the increase remains insufficient to offset the rapidly growing import bill. The rising domestic demand, higher petroleum imports, increased vehicle imports, and growth in industrial raw materials are believed to have contributed to the import surge.

At the same time, export growth indicates gradual recovery in sectors such as palm oil, soybean oil, carpets, garments, tea, and handicrafts. 

However, Nepal still faces structural challenges, including limited industrial capacity, high production costs, and weak export diversification.

Edible oil dominates exports

The share of edible oil in the country’s total exports stood at 46 per cent during the review period, highlighting Nepal’s growing dependence on exports based on imported crude edible oils. During the review period, edible oil worth Rs. 115.27 billion was exported.

Among edible oils, the country exported soybean oil worth Rs. 101.26 billion during the first 10 months of the current fiscal year. Soybean oil alone accounted for nearly 41 per cent of the country’s total exports during the period.

The export of soybean oil surged significantly by 28 per cent during the review period as compared to the same period last fiscal year. Soybean oil worth Rs. 78.75 billion had been exported during the first 10 months of the last fiscal year.

Similarly, sunflower oil worth Rs. 7.41 billion and palm oil worth Rs. 6.60 billion were exported during the same period. Other major export items included carpets worth Rs. 9.69 billion, tea and coffee worth Rs. 3.43 billion, cardamom worth Rs. 11.42 billion, and dog chews worth Rs. 3.81 billion.

Petroleum imports cross Rs. 257 billion

Petroleum products remained the country’s largest import category. The country imported petroleum products worth Rs. 257 billion during the review period. This included diesel worth Rs. 130.93 billion, petrol worth Rs. 58.63 billion, aviation fuel worth Rs. 20.80 billion, kerosene worth Rs. 621 million, and liquefied petroleum gas worth Rs. 46.11 billion.

The country also imported large quantities of crude edible oils, including crude soybean oil worth Rs. 106.82 billion, crude sunflower oil worth Rs. 17.39 billion, and crude palm oil worth Rs. 11.48 billion.

Imports of cereals reached Rs. 51.25 billion during the first 10 months of the fiscal year. Paddy and rice imports totalled Rs. 35.46 billion, while maize imports stood at Rs. 10.41 billion.

Meanwhile, imports of electric vehicles, including four-wheelers and three-wheelers, reached Rs. 22.15 billion, while smartphone imports reached Rs. 39.39 billion by mid-May of the current fiscal year.