Nepal’s trade deficit expanded by 10.52 percent in the first five months of the current fiscal year, reaching Rs 649.68 billion. The widening gap was driven primarily by a sharp rise in import costs for essential goods, including petroleum products, crude edible oils, and smartphones, according to data from the Department of Customs.
Imports Outpace Export Growth
While Nepal’s merchandise exports grew impressively by 58.17 percent to Rs 116.50 billion, this was overshadowed by a 15.83 percent surge in imports, which totaled Rs 766.18 billion. As a result, the overall trade volume rose by 20.07 percent to Rs 882.69 billion.
Key Import Drivers
The import bill was led by energy and food essentials, including:
- Petroleum Products: Rs 108.02 billion (Diesel: Rs 45.60 billion, Petrol: Rs 27.33 billion, Cooking Gas: Rs 22.39 billion)
- Crude Soybean Oil: Rs 39 billion
- Gold: Rs 15.72 billion
- Mobile Phones: Rs 15.04 billion
Export Highlights
On the export side, soybean oil was the top foreign exchange earner at Rs 46.55 billion. Other significant exports included:
- Large Cardamom: Rs 5.53 billion
- Woolen Carpets: Rs 4.13 billion
- Readymade Garments and Plywood: Approximately Rs 1.33 billion each
Customs Revenue Boost
The rise in imports also boosted government revenue, with customs collections increasing by 6.68 percent to Rs 197.59 billion. Taxes on diesel and petrol alone contributed Rs 19.66 billion and Rs 17.84 billion, respectively. Overall, import taxes accounted for 47.62 percent of the government’s total revenue of Rs 414.90 billion during the review period.
