Nepal’s foreign trade expanded by 22.54 percent in the first two months of the current fiscal year (FY), driven by strong growth in both exports and imports, according to the Department of Customs (DoC).
Between mid-July and mid-September, total trade reached Rs 352.47 billion, up from Rs 287.63 billion in the same period last year.
Export earnings surged 88.57 percent to Rs 47.31 billion, while imports grew 16.23 percent to Rs 305.15 billion. The import–export ratio stood at 6.45, indicating that Nepal spent around Rs 6.45 on imports for every Re 1 earned through exports.
Traders attributed the rise in imports largely to preparations for upcoming festivals, a seasonal trend observed each year. They added that the Gen Z protests in September and the prolonged disruption of the Tatopani and Rasuwagadhi trade routes with China had negligible impact on overall trade volume.
On the import side, petroleum products remained Nepal’s largest purchase at Rs 45.39 billion. Other major import categories included animal fat, vegetable ghee, soybean oil, sunflower oil, and palm oil worth Rs 27.41 billion, steel and iron products at Rs 22.97 billion, and electrical devices, machinery, and parts at Rs 22.16 billion.
Exports were led by animal fat and edible oils, which together earned Rs 23.56 billion, accounting for nearly half of the country’s total export revenue.
Despite rising exports, the trade deficit widened to Rs 257.83 billion, an increase of 8.59 percent year-on-year.
With the higher import volume, government revenue from customs also rose by 4.46 percent, reaching Rs 77.63 billion, up from Rs 74.31 billion in the same period last year.
