Nepal records Rs 861.38bn trade deficit in seven months

KATHMANDU: Nepal has incurred a trade loss of Rs 861.38 billion out of a total foreign trade of Rs 1,115.79 billion in the last seven months of the current fiscal year 2024/25, according to data released by the Department of Customs.

The report includes import and export details until February 12. During this period, Nepal's imports amounted to Rs 988.58 billion, while exports totalled Rs 127.20 billion.

The Department noted a 46.50% increase in exports compared to the same period last year, while imports saw a 10.09% rise. Overall, total foreign trade increased by 13.30%.

Despite this growth, the trade deficit expanded by 6.20% compared to the same period last year.

Foreign trade is primarily driven by imports, which account for 88.60%, while exports make up 11.40%.

The Department's records show that Nepal faced a trade deficit of Rs 498.34 billion with its largest trade partner, India, over the last seven months. In this period, Nepal imported goods worth Rs 596.35 billion from India and exported goods worth Rs 98.75 billion.

Nepal also faces a trade loss with China, amounting to a deficit of Rs 19.44 billion over the past seven months. Imports from China totalled Rs 192.45 billion, while exports to China stood at only Rs 2 billion.

Other countries contributing to Nepal's trade deficit include Argentina, the UAE, and Australia. However, Nepal recorded trade surpluses with 35 countries including Afghanistan, where imports amounted to Rs 12.4 million and exports reached Rs 494.5 million. Denmark, Russia, Austria, Norway, and the Maldives are among the countries facing trade deficits with Nepal.

The Department highlighted that a significant portion of foreign currency is spent on petroleum products, while soybean oil remains Nepal's top export.

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