Nepal’s foreign trade registered growth in the fourth month of the current fiscal year, with exports rising by 4.16% to Rs 52.67 billion. Imports, which had seen stagnation earlier, increased marginally by 0.17% to Rs 513.38 billion compared to Rs 512.50 billion during the same period last year.
Data from the Department of Customs (DoC) indicates that both exports and imports had recorded negative growth during the first three months of the fiscal year, ending in mid-October. However, trade activity rebounded between mid-October and mid-November, signaling a positive shift in cross-border trade.
Despite the recovery, the trade deficit widened due to the significant gap between export and import growth. By mid-November, the trade deficit stood at Rs 460.71 billion, reflecting a 0.26% decline compared to the same period last year. This contrasts with the deficit of Rs 429.13 billion recorded in mid-October, which had shown a negative growth of 3.96%.
Surging Imports of Electric Vehicles and Mobile Phones
The import of electric vehicles (EVs) showed notable growth, increasing by 26% in the first four months of the fiscal year. Nepal imported 4,217 units of EVs worth Rs 10.53 billion, contributing Rs 5.72 billion in customs revenue. This marks a sharp rise from the 3,115 units valued at Rs 7.70 billion imported during the same period last year.
Mobile phone imports also remained substantial, with 827,925 units worth over Rs 13.40 billion entering the country. The majority of these devices, around 80%, were sourced from China, followed by 15% from India. The remaining 5% were imported from countries such as the US, Japan, South Korea, the UK, Vietnam, Canada, and Australia.
Mixed Signals in Trade
While the modest improvement in exports and the stabilization of imports offer encouraging signs, the ongoing trade deficit remains a concern for Nepal’s economy. The increasing reliance on imports, particularly for high-value goods like electric vehicles and mobile phones, underscores the need for stronger domestic production and export promotion strategies to balance trade dynamics.
