Festivals fuel Nepal’s foreign trade boom — imports and exports soar by 26% in first quarter of current FY

KATHMANDU: Nepal’s international trade witnessed a significant surge during the festive season, with both imports and exports recording robust growth in the first quarter of the current fiscal year 2082/83 (July–October 2025).

According to the Department of Customs, the country’s total international trade reached Rs 540.86 billion by the end of Ashoj, marking a 26.04 percent increase compared to Rs 429.13 billion in the same period of the previous fiscal year 2081/82.

Imports and exports both soar

Imports during the first three months climbed to Rs 468 billion, up by 19.79 percent from Rs 390.75 billion last year. Exports, however, surged even more dramatically, soaring 89.64 percent to Rs 72.78 billion, compared to Rs 38.37 billion in the same period a year ago.

The steep rise in exports helped moderate the growth of Nepal’s trade deficit, even as total trade volume expanded sharply. The trade deficit stood at Rs 395.30 billion, up 12.18 percent from Rs 352 billion in the previous fiscal year’s first quarter.

Export share rises to 13.46 percent

The data shows a shift in trade composition — imports accounted for 86.54 percent of total trade, down by 4.96 percent, while exports increased their share to 13.46 percent, a sharp 50.47 percent jump year-on-year.

In Ashoj alone, Nepal imported goods worth Rs 163 billion and exported Rs 25 billion, reflecting a strong trade performance driven by festive demand and global market recovery.

Exports now exceed petroleum imports

In a rare reversal, Nepal’s total exports surpassed its petroleum import expenditure for the first time in years. The country spent Rs 66.87 billion on petroleum imports during the first quarter, while exports reached Rs 72.78 billion.

The largest export item was soybean oil, followed by carpets and sunflower oil. Similarly, on the import side, crude soybean oil topped the list, followed by diesel, chemical fertilizers, petrol, and LPG gas.

Major import and export commodities

Top imports:

Crude soybean oil: Rs 30.24 billion

Diesel: Rs 20.69 billion

Chemical fertilizers: Rs 17.11 billion

Petrol: Rs 16.76 billion

LPG gas: Rs 13.98 billion

Smartphones: Rs 13.62 billion

Gold: Rs 10.25 billion

Top exports:

Soybean oil: Rs 30.69 billion

Carpets: Rs 2.57 billion

Sunflower oil: Rs 2.13 billion

The trade data reflects a strong rebound in industrial and consumer activity, largely driven by increased spending during Dashain and Tihar festivals.

India and China dominate trade

India remains Nepal’s largest trading partner, accounting for the bulk of both imports and exports.

Imports from India: Rs 258 billion

Exports to India: Rs 59.12 billion

China stood as the second-largest import source, with Rs 104 billion worth of goods entering Nepal, though exports to China remained minimal at Rs 186.4 million.

Argentina, the UAE, and the United States were also among Nepal’s top trade partners — Argentina primarily as a source of crude oil and edible oil raw materials.

Economists suggest the sharp rise in trade reflects a post-pandemic consumption rebound, higher industrial demand, and improved cross-border logistics. However, they caution that Nepal’s heavy reliance on imports, especially of petroleum and raw materials, continues to pose pressure on foreign exchange reserves and overall trade balance.

Officials at the Ministry of Industry, Commerce, and Supplies say efforts are underway to diversify export products and markets, with a focus on value-added manufacturing and agricultural goods.