Nepal’s trade deficit expanded by 11.22 percent, reaching Rs 1.098 trillion during the first eight months of the fiscal year 2025/26.
According to foreign trade data released by the Department of Customs on Sunday, the country’s total foreign trade amounted to Rs 1.48 trillion. In comparison, the trade deficit stood at Rs 987.39 billion during the same period last fiscal year.
Over the eight-month period, Nepal imported goods worth Rs 1.289 trillion, while exports totaled Rs 191.11 billion. Imports rose by 12.54 percent, whereas exports increased by 20.83 percent. In absolute terms, import spending grew by Rs 144 billion, while export earnings rose by only Rs 32.94 billion.
India remained Nepal’s largest trading partner, with a trade deficit of Rs 580 billion. Imports from India reached Rs 735 billion, while exports stood at Rs 155 billion. Trade with China also contributed significantly to the deficit, with imports worth Rs 278 billion and exports of just Rs 14 billion, resulting in a gap of Rs 264 billion. Other countries such as Argentina, the UAE, and Indonesia also added to the deficit.
Despite the overall imbalance, Nepal recorded modest trade surpluses with a few countries, including Romania (Rs 510 million), Norway (Rs 35 million), and Iceland (Rs 27 million).
Petroleum products continued to dominate imports, with diesel alone accounting for Rs 82.10 billion, or 6.36 percent of total imports. Other major imports included petrol (Rs 43.89 billion), cooking gas (Rs 37.31 billion), unrefined soybean oil (Rs 51.86 billion), smartphones (Rs 29.93 billion), iron products (Rs 36.82 billion), gold (Rs 24 billion), and silver (Rs 19 billion).
Mobile phone imports saw a sharp increase, rising by more than Rs 8 billion compared to the same period last year. Of the 1.528 million units imported, about 85 percent were sourced from China.
On the export front, soybean oil emerged as the leading product, with exports valued at Rs 75.77 billion—up 58 percent from Rs 47.94 billion last year. Other key exports included cardamom (Rs 9.6 billion), carpets (Rs 6.6 billion), sunflower oil (Rs 6.3 billion), and palm oil (Rs 4.4 billion).
