Nepal’s trade deficit has been steadily increasing as the country becomes more dependent on imports. According to data released by the Customs Department up to mid-March (end of Falgun), Nepal has incurred a trade deficit of nearly NPR 1 trillion with just five countries, including neighboring India and China.
By mid-March of the current fiscal year, Nepal recorded a trade deficit of NPR 567.39 billion with India. During this period, imports from India amounted to NPR 724.06 billion, while exports stood at NPR 156.66 billion.
Similarly, trade with China shows a significant imbalance. Nepal imported goods worth NPR 275.66 billion from China, while exports totaled only NPR 983.3 million, resulting in a trade deficit of NPR 264.68 billion.
Other countries contributing heavily to Nepal’s trade deficit include Argentina (over NPR 75 billion), the United Arab Emirates (NPR 44.41 billion), and Indonesia (over NPR 14 billion). Nepal also faces trade deficits with several other nations.
Overall, by the end of Falgun in fiscal year 2082/83, Nepal’s total trade deficit has reached approximately NPR 1.1 trillion. According to the Customs Department, total foreign trade during this period stood at NPR 1.44 trillion, with a deficit of NPR 1.098 trillion.
In the past eight months, imports totaled NPR 1.289 trillion, while exports reached only NPR 191.11 billion. Compared to the same period last fiscal year, imports increased by 12.54%, while exports rose by 29.83%.
Nepal has recorded trade surpluses with a few countries, including Romania, Norway, Iceland, Niger, Iraq, and Kenya. In the past eight months, Nepal earned a surplus of NPR 506.5 million with Romania, NPR 33.3 million with Norway, and NPR 25.7 million with Iceland.
Fuel Imports Dominate
Petroleum products remain the largest import category. During the review period, Nepal imported diesel worth NPR 82.10 billion, petrol worth NPR 43.89 billion, and LPG gas worth NPR 37.31 billion.
Other major imports include crude soybean oil (NPR 81.18 billion), smartphones (NPR 29.93 billion), iron products (NPR 36.82 billion), gold (NPR 23.49 billion), and silver (NPR 18.44 billion).
Exports Led by Edible Oils and Agricultural Products
Soybean oil is Nepal’s top export, totaling NPR 75.77 billion over the past eight months. Other key exports include cardamom (NPR 9.49 billion), carpets (NPR 6.53 billion), sunflower oil (NPR 6.20 billion), and palm oil (NPR 4.32 billion).
Growing Dependence on Food Imports
The data also shows Nepal’s increasing dependence on food imports. Rice has become the largest imported food item, with total imports of paddy, rice, and basmati rice reaching NPR 27.91 billion during the review period, up from NPR 24.36 billion in the same period last year.
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