KATHMANDU: Nepal’s trade deficit widened by 10.52% over the first five months of the current fiscal year.

According to the Department of Customs, the trade deficit widened to Rs 649.68 billion between mid-July and mid-December of the current fiscal year. In the same period of the previous fiscal year, Nepal had recorded a trade deficit of Rs 587.83 billion.

Imports rose by 15.83% to Rs 766.19 billion in the first five months, compared to Rs 661.49 billion in the same period a year earlier. Although imports continued to dominate overall trade, their growth remained slower than that of exports.

Exports surged by a strong 58.17% to Rs 116.51 billion in the review period, up from Rs 73.66 billion in the corresponding period of the last fiscal year.

Foreign trade expanded significantly to Rs 882.69 billion, marking a 20.07% increase from Rs 735.15 billion recorded in the same period of the previous fiscal year.

The imports-to-exports ratio improved significantly, falling from 8.98 to 6.58, as export growth outpaced imports. The share of exports in total foreign trade increased to 13.20%, up from 10.02% in the same period of the previous fiscal year.

Top Imports and Exports
Crude soybean oil emerged as Nepal’s largest import during the period. The country imported Rs 46.97 billion worth of crude oil during the period, followed by diesel worth Rs 45.6 billion and petrol amounting to Rs 27.33 billion. Liquefied petroleum gas (LPG) imports stood at Rs 22.39 billion, while sponge iron imports totaled Rs 21.84 billion.

On the export front, soybean oil topped the list with exports worth Rs 46.55 billion. Black cardamom followed with total exports worth Rs 5.53 billion. Hand-knotted carpets, sunflower oil, and jute products followed with total exports of Rs 4.13 billion, Rs 3.73 billion, and Rs 2.73 billion, respectively.

Major Trading Partners

As usual, India remained Nepal’s largest import market, with the country importing goods worth Rs 434.06 billion from its southern neighbor. China was next with total imports of Rs 163.73 billion, followed by Argentina (Rs 44.56 billion), the UAE (Rs 23.45 billion), and the United States (Rs 10.35 billion), respectively.

India was also the country’s largest export market, absorbing goods worth Rs 95.04 billion. The United States followed with Rs 7.42 billion, while Germany, the United Kingdom, and France imported Nepali products worth Rs 2.12 billion, Rs 1.44 billion, and Rs 966.32 million, respectively.