Nepal’s total foreign trade increased by 14.78 percent during the first eleven months of the current fiscal year 2025/26 (2082/83 BS), reaching Rs 2.172 trillion, according to the Department of Customs. During the same period last year, the country’s total external trade stood at Rs 1.892 trillion.
Imports Rise Sharply
During the review period, Nepal imported goods worth Rs 1.894 trillion, representing a 15.16 percent increase compared to the corresponding period of the previous fiscal year, when imports amounted to Rs 1.645 trillion.
Exports Also Increase, but at a Slower Pace
Exports rose by 12.28 percent to Rs 277.96 billion, up from Rs 247.57 billion recorded during the same period last year.
However, export growth lagged behind the increase in imports, resulting in a further expansion of the country’s trade imbalance.
Trade Deficit Surges
Nepal’s trade deficit widened by 15.67 percent to Rs 1.616 trillion, compared to Rs 1.397 trillion during the corresponding period of the previous fiscal year.
Economy Remains Import-Oriented
The figures highlight Nepal’s continued dependence on imports. Of the total foreign trade:
- Imports accounted for 87.20 percent, while
- Exports contributed only 12.80 percent.
In the previous year, exports represented 13.08 percent of total trade, indicating a slight decline in their overall share.
Import-Export Ratio Deteriorates
The import-to-export ratio increased from 6.64 to 6.81 during the review period. This means that for every Rs 1 worth of goods exported, Nepal imported goods worth approximately Rs 6.81.
Need for Stronger Production and Export Policies
Although the overall volume of foreign trade has expanded, the continuously widening trade deficit underscores Nepal’s persistent structural weakness and heavy reliance on imported goods. The latest figures suggest that the country needs more effective policies aimed at:
- Boosting domestic production,
- Enhancing export competitiveness,
- Promoting industrialization,
- Diversifying export products and markets, and
- Reducing excessive dependence on imports.
Economists argue that without significant improvements in productive capacity and export promotion, Nepal’s trade deficit is likely to remain a major challenge to sustainable economic growth and external sector stability.
