Nepal’s trade deficit widened by 16.63 percent to Rs 1.781 trillion in fiscal year 2025/26 as import growth continued to outpace exports, according to the Department of Customs. The deficit stood at Rs 1.527 trillion a year earlier, while the import-to-export ratio increased to 6.65, meaning Nepal imported goods worth Rs 6.65 for every rupee earned from exports.
Overall foreign trade expanded by 15.88 percent during the fiscal year. Imports rose 16.20 percent to Rs 2.096 trillion, reflecting Nepal’s continued dependence on foreign goods. Exports also increased by 13.81 percent to Rs 315.29 billion, but their share in total trade declined slightly to 13.07 percent, highlighting the country’s weak export competitiveness.
Trade experts warn that Nepal’s structural trade imbalance remains a major economic challenge despite repeated government efforts to promote self-sufficiency and import substitution. The government recently unveiled a five-year strategy aimed at boosting exports to 20 percent of GDP.
India remained Nepal’s largest trading partner, with a trade deficit of Rs 1.210 trillion, followed by China, where the deficit reached Rs 423 billion.
