Nepal’s foreign trade, which had been in a prolonged negative state, is gradually showing signs of improvement. According to data released by the Customs Department for the current fiscal year up to mid-December, both imports and exports have increased.
In the first five months of the current fiscal year, Nepal imported goods worth NPR 661.48 billion, marking a 3% increase compared to the same period last year. On the export side, exports rose by 16.5%, reaching NPR 73.65 billion compared to NPR 63.20 billion during the same period last year.
With the increase in both imports and exports, the country’s trade deficit has also grown. By mid-December, the total foreign trade stood at NPR 735.14 billion, with the trade deficit amounting to NPR 587.82 billion, a 4.21% increase compared to the same period last year.
Petroleum products topped the list of imported goods. During this period, Nepal imported diesel worth NPR 42 billion, petrol worth NPR 26 billion, and LPG worth NPR 24 billion. Similarly, iron and steel products and smartphones were among the major imported items.
On the export side, soybean oil, carpets, cardamom, sunflower oil, and tea were the most exported products. In the first five months, soybean oil exports amounted to NPR 8.36 billion, carpets to NPR 4.96 billion, cardamom to NPR 3.45 billion, sunflower oil to NPR 2.97 billion, and tea to NPR 2.71 billion.
This improvement in Nepal’s foreign trade highlights the need for further strategic measures to reduce the trade deficit. Diversifying industries and providing policy support for export promotion will be crucial to achieving sustainable trade growth.
