Nepal’s trade deficit expanded by 10.15 percent in the first half of the current fiscal year, driven largely by heavy imports of petroleum products, according to the Department of Customs.
Between mid-July 2025 and mid-January 2026, the country recorded a trade deficit of Rs 797.004 billion, up from Rs 723.58 billion in the same period last fiscal year. The increase reflects a sharp rise in imports, which grew by Rs 117.02 billion to Rs 939.02 billion, while exports rose modestly by Rs 43.23 billion to Rs 142.01 billion.
Petroleum products made up a major share of imports. Nepal spent Rs 58.27 billion on diesel, Rs 33.07 billion on petrol, Rs 27.04 billion on cooking gas, and Rs 9.93 billion on aviation fuel. Other key imports included crude soybean oil, iron and iron products, gold, and smartphones.
On the export side, processed soybean oil remained the top item, earning Rs 56.08 billion, followed by large cardamom, woollen carpets, sunflower products, and fibre.
India continued to be Nepal’s largest trading partner, accounting for 56.7 percent of total imports. Trade with India alone resulted in a deficit of Rs 416.71 billion during the review period. Nepal traded with 152 countries overall and posted trade deficits with nearly all of them, with China, Argentina, the UAE, and Indonesia among the largest contributors.
