Nepal’s Foreign Trade Crosses Rs 1.94 Trillion; Trade Deficit Widens to Rs 1.44 Trillion on Import Pressure

Kathmandu – Nepal’s total foreign trade crossed Rs 1.94 trillion during the first ten months of fiscal year 2025/26 (mid-July 2025 to mid-May 2026), according to data released by the Department of Customs. Although both imports and exports recorded growth during the period, the continued dominance of imports pushed the country’s trade deficit even higher.

During the review period, Nepal imported goods and services worth Rs 1.69 trillion, up 14.82 percent compared to Rs 1.47 trillion recorded in the corresponding period of the previous fiscal year. The rise in imports suggests stronger domestic demand and consumption, but also highlights the economy’s continued dependence on imported goods.

Exports also showed signs of improvement. In the first ten months of the current fiscal year, Nepal exported goods and services worth Rs 248.96 billion, compared to Rs 217.91 billion in the same period last year, representing a 14.25 percent increase.

Despite growth in exports, the overall trade imbalance continued to deepen as import volumes remained significantly larger. Nepal’s trade deficit reached Rs 1.44 trillion during the review period, an increase of 14.92 percent from Rs 1.26 trillion recorded in the same period of the previous fiscal year.

The overall size of Nepal’s foreign trade also expanded. Total trade reached Rs 1.94 trillion, marking a 14.75 percent year-on-year increase.

According to the Department of Customs, imports continue to dominate Nepal’s trade structure. Imports accounted for 87.17 percent of total trade, while exports contributed only 12.82 percent, underscoring the country’s continued import-driven economic pattern.