Nepal's trade deficit stands at Rs 1,440bn in FY 2023/24

KATHMANDU: Nepal faced a trade deficit of Rs 1,440 billion while carrying out foreign trade totalling Rs 1,745 billion in the last fiscal year 2023/24. 

According to the Department of Customs' foreign trade statistics, Nepal imported goods worth Rs 592 billion during the last fiscal year, while its exports amounted to Rs 152 billion.

Compared to the previous fiscal year 2022/23, there was a positive trend: the trade deficit decreased by 0.96%, overall foreign trade declined by 1.33%, imports decreased by 1.16%, and exports decreased by 3.03%.

India remained Nepal's largest trading partner, resulting in a trade deficit of Rs 893.17 billion. Nepal imported goods worth Rs 996.68 billion from India and exported goods worth Rs 103.17 billion. China followed with a trade deficit of Rs 296.18 billion — Nepal imported goods worth Rs 298.77 billion from China and exported goods valued at Rs 258.8 million.

Other countries contributing to Nepal's trade deficit included the United Arab Emirates, Ukraine, and Malaysia. However, Nepal achieved its highest trade profit in transactions with Denmark, earning Rs 467.05 million. The second-highest trade profit was recorded with Afghanistan, amounting to Rs 466 million.

In terms of imports, petroleum products topped the list: diesel (Rs 143.97 billion), petrol (Rs 68.10 billion), and liquefied petroleum gas (LPG) (Rs 55.61 billion). Iron products accounted for Rs 39.03 billion in imports, while smartphones contributed Rs 28.66 billion.

Nepal also imported gold worth Rs 23.65 billion. On the export side, Nepal shipped various goods, including carpets (Rs 10.57 billion) and cardamom (Rs 7.93 billion).