Nepal’s Exports Rise by 16.5% in Five Months Amid Trade Deficit

Nepal’s foreign trade, which had been on a downward trajectory for an extended period, has shown signs of recovery. According to data released by the Customs Department, exports increased by 16.5% in the first five months of the current fiscal year (Saun-Mangsir), compared to the same period last year.

The export value reached Rs 73.20 billion during this period, up from Rs 63.54 billion in the corresponding months of the previous fiscal year. Imports also rose modestly, registering a 3% increase.

Despite the encouraging growth in exports, Nepal’s trade deficit remains a significant challenge. The country incurred a trade loss of Rs 587 billion in the first five months, an increase of 4.21% compared to last year.

Petroleum products continue to dominate Nepal’s import portfolio. During the period under review, the country imported petroleum products worth Rs 42.17 billion, underscoring its heavy reliance on energy imports.

The rise in exports signals a potential shift toward better trade performance, but the growing trade deficit highlights the need for policies to promote domestic production and reduce dependence on imports.