Nepal’s Trade Deficit Surpasses Rs 460 Billion in First Four Months of Fiscal Year

Nepal’s trade deficit reached Rs 460.71 billion during the first four months of the current fiscal year, according to data released by the Customs Department.

Between mid-July and mid-November, Nepal imported goods worth Rs 513.38 billion, while exports were limited to Rs 52.67 billion, resulting in a stark imbalance in foreign trade. The total trade volume during this period stood at Rs 566.5 billion, with imports increasing marginally by 0.17 percent and exports rising by 4.16 percent compared to the same period last fiscal year.

Nepal’s trade deficit with its largest trading partner, India, exceeded Rs 281 billion. Imports from India dominated the trade balance, with diesel accounting for Rs 29.4 billion, petrol for Rs 21.56 billion, and LP Gas for Rs 18.85 billion. Other significant imports included iron-related goods and smartphones.

On the export front, carpets emerged as Nepal’s top export item, valued at Rs 3.6 billion, followed by soybean oil at Rs 3.41 billion, tea at Rs 2.21 billion, and cardamom at Rs 1.9 billion.

The widening trade deficit underscores Nepal’s reliance on imports, particularly fuel and technology, and its struggle to expand its export base. Policymakers have emphasized the need to diversify export products and strengthen domestic production to reduce the deficit.

The figures highlight the structural challenges facing Nepal’s economy, necessitating strategic interventions to address trade imbalances and foster sustainable economic growth.