Nepal’s Trade Deficit Rises 6.3% to Rs 1.39 Trillion Despite 77.8% Export Surge
Nepal’s trade deficit widened by 6.3% to Rs 1,397.23 billion in FY 2024/25 despite a robust 77.8% surge in exports, driven by soybean oil and jute goods.
Kathmandu, July 13— Nepal’s total trade deficit ballooned to Rs 1,397.23 billion in the first eleven months of the fiscal year 2024/25, marking a 6.3% increase compared to the same period last year, according to Nepal Rastra Bank’s latest macroeconomic update.
This reversal comes after a 1.7% decline in trade deficit during the same period in FY 2023/24. Encouragingly, the export-import ratio has improved to 15.1%, up from 9.6% a year ago, showing stronger export performance.
Imports Surge
Total merchandise imports surged by 13.1% to Rs 1,644.80 billion, recovering from a 1.8% contraction last year. Imports from India rose 7.6%, China 15.3%, and other nations a striking 29.5%.
Major imported goods with rising demand included:
Crude soybean oil
Rice and paddy
Vehicles and spare parts
Edible oil
Sponge iron
In contrast, imports of:
Petroleum products
Gold
Electrical equipment
Chemical fertilizers
Coal
declined during the same period.
Exports Soar
Total exports surged by 77.8% to Rs 247.57 billion—an impressive turnaround from a 3.0% decline a year earlier. Exports to India more than doubled, growing by 112.6%, while exports to China and other countries rose by 3.0% and 4.4%, respectively.
Top export performers:
Soybean oil
Polyester yarn and thread
Jute products
Tea
Rosin
Items that saw falling exports:
Palm oil
Zinc sheets
Juice
Readymade garments
Cardamom
Trade Channel Highlights
Export volumes increased at major customs points like Bhairahawa, Biratnagar, Birgunj, Dry Port, Kailali, Krishnanagar, Mechi, Nepalgunj, Rasuwa, and Tribhuvan International Airport. However, imports decreased only at Jaleshwor and the TIA customs, while increasing elsewhere.
A notable change was seen in trade settlements with India in convertible currencies, which jumped to Rs 167.30 billion from Rs 137.13 billion.
These data points come from Nepal Rastra Bank’s current macroeconomic and financial situation report for FY 2024/25.