Nepal is closely watching the escalating tensions in the region after India launched missile strikes on Pakistan-administered Kashmir on Tuesday night. The strikes come two weeks after a deadly terrorist attack in Indian-administered Kashmir that claimed the lives of 26 tourists, including one Nepali national.
The rising conflict has triggered concerns in Nepal over the potential impact on its trade relations with Pakistan. According to the Department of Customs, trade between Nepal and Pakistan has seen a notable uptick in the current fiscal year (FY 2024/25), particularly between mid-July and mid-April.
During this period, Nepal imported goods worth Rs 254.7 million from Pakistan, while exports stood at only Rs 62.2 million—resulting in a trade deficit of Rs 192.4 million. Nepal’s imports from Pakistan include a variety of products, such as spices, medicinal herbs, pharmaceuticals, beauty items, and chemicals.
Spices remain the most frequently imported commodity, with Nepal bringing in Rs 53.8 million worth during the reporting period. This is followed by medicinal herbs worth Rs 24.6 million and face creams valued at Rs 14 million. The pharmaceutical imports include antibiotics and hormone-based drugs, while sodium bicarbonate is a key chemical import.
Other products imported from Pakistan include black salt, soaps, and plastic goods.
Trade experts warn that if the conflict escalates or persists, it could severely disrupt import flows, leading to potential shortages in the Nepali market—particularly for essential goods like medicines and spices.
