Nepal’s merchandise exports soared by 88.6 percent to Rs 47.32 billion in the first two months of Fiscal Year 2025/26, marking a sharp rebound compared to a 5.1 percent decline during the same period last year. The data was revealed in the Current Macroeconomic and Financial Situation of Nepal report, published by Nepal Rastra Bank (NRB) on Tuesday. The findings are based on statistics up to mid-September 2025.
Exports: Sharp Rise Led by India
Destination-wise, exports to India surged by an impressive 139.9 percent, while shipments to other countries rose marginally by 0.4 percent. In contrast, exports to China plummeted by 58.5 percent during the review period.
According to the NRB report, exports of soybean oil, palm oil, jute goods, cardamom, and noodles recorded notable increases. However, sales of zinc sheets, particle boards, tea, woolen carpets, and oil cakes saw a decline.
Imports: Moderate Growth but Rising Trade Gap
During the same two-month period, merchandise imports rose by 16.2 percent to Rs 305.16 billion, compared to a marginal 1.1 percent increase a year earlier. Imports from India, China, and other countries climbed by 8.0 percent, 25.1 percent, and 33.4 percent respectively.
Significant growth was observed in imports of crude soybean oil, chemical fertilizers, transport equipment, vehicle and aircraft spare parts, and telecommunications equipment. Conversely, imports of hot rolled sheets in coils, edible oils, readymade garments, oilseeds, and garlic declined.
As a result, Nepal’s trade deficit widened by 8.6 percent to Rs 257.84 billion in the review period, compared to a 1.8 percent rise in the same period last year. Despite this, the export–import ratio improved to 15.5 percent from 9.6 percent a year ago, reflecting stronger export performance relative to imports.
Trade Composition and Price Index
Merchandise imports from India settled in convertible foreign currency totaled Rs 27.75 billion, down from Rs 29.93 billion in the corresponding period last year.
By Broad Economic Categories (BEC), exports were dominated by final consumption goods (69.3 percent), followed by intermediate goods (29.9 percent) and capital goods (0.8 percent). In contrast, the same ratios in the previous year stood at 45.6 percent, 53.2 percent, and 1.2 percent respectively — indicating a shift toward consumer-oriented exports.
On the import side, final consumption goods accounted for 36.8 percent of total imports, intermediate goods 54.3 percent, and capital goods 8.9 percent. These figures compared to 41.8 percent, 49.7 percent, and 8.5 percent respectively in the same period of the previous year.
Terms of Trade
The year-on-year unit value export price index fell by 1.3 percent, while the import price index edged up by 0.2 percent, resulting in a 1.5 percent decline in the terms of trade (ToT) index. This indicates that despite higher export volumes, Nepal’s export prices slightly weakened relative to import prices.
