Nepal’s export trade surges to record high of Rs 247.57 billion in 11 Months, Narrowing trade deficit

KATHMANDU: Nepal’s export sector has reached a historic milestone, with total outbound trade nearing Rs 250 billion by the end of Jestha (mid-June) of the current fiscal year 2024-25. According to data released by the Department of Customs, total exports in the first 11 months (Shrawan to Jestha) soared to Rs 247.57 billion—an impressive 77.77% growth compared to the same period last year, when exports stood at Rs 139.26 billion.

The dramatic jump in exports, especially driven by a surge in refined vegetable oil exports, has pushed Nepal’s foreign trade dynamics toward a more balanced structure. In Baisakh alone, total exports stood at Rs 218 billion, underscoring consistent growth momentum.

Meanwhile, imports also witnessed a rise, totaling Rs 1.64 trillion (Rs 1,644.79 billion) by the end of Jestha, marking a 13.15% year-on-year increase. During the same period last fiscal year, Nepal imported goods worth Rs 1.45 trillion (Rs 1,453.70 billion). In the last month alone, imports hovered around Rs 170 billion.

With both exports and imports surging, Nepal’s total foreign trade volume reached Rs 1.892 trillion in Jestha, up from Rs 1.692 trillion in Baisakh. This marks an 18.80% increase compared to the same period last year, when foreign trade was worth Rs 1.592 trillion.

Exports Now Hold 13pc Share in Foreign Trade

The soaring export volume has lifted the share of exports in total trade to 13.08%, a sharp rise of 49.65% from the previous year. Conversely, the import share has slightly contracted to 86.92%, down by 4.76% compared to the previous year, indicating a slow but positive shift toward export-led trade balance.

Trade Deficit Expands Slightly Despite Export Boom

Despite the record-breaking export growth, Nepal still faces a massive trade deficit, which widened by just 6% to Rs 1.397 trillion (Rs 1,397 billion) by Jestha. Last year, the deficit for the same period was Rs 1.314 trillion. The import-to-export ratio has improved significantly to 6.64, a 36.35% reduction compared to the same period last year, signaling a more sustainable trading path.

Petrolium Imports Still a Major Burden

Nepal spent a staggering Rs 294 billion on fuel imports over the past 11 months. This includes petrol, diesel, LPG, aviation fuel, and kerosene. Diesel alone accounted for Rs 115.55 billion, making it the top import item. Other key petroleum-related imports included:

Crude soybean oil – Rs 95.72 billion

Petrol – Rs 58.58 billion

LPG (cooking gas) – Rs 57.36 billion

Sunflower oil (crude) – Rs 26.87 billion

Gold – Rs 17.12 billion

Surge in Machinery and Vehicle Imports

The 11-month period also saw over Rs 101 billion worth of vehicles imported, including a significant share of electric vehicles, indicating shifting preferences and rising middle-class purchasing power. Similarly, electrical machinery and equipment imports surpassed Rs 100 billion, showing increased industrial and infrastructure activity.

Top Export Items Boost Trade Momentum

The bulk of Nepal’s export rise was due to refined edible oil, especially soybean and sunflower oils. Major export items for the first 11 months include:

Soybean oil – Rs 93.51 billion

Sunflower oil – Rs 11.33 billion

Handmade carpets – Rs 9.78 billion

Cardamom – Rs 7.19 billion

Rolled iron/steel – Rs 5.13 billion

This shift toward high-value processed exports reflects Nepal’s evolving export strategy and rising demand from neighboring markets, especially India and Bangladesh.