Fiscal Nepal
First Business News Portal in English from Nepal
KATHMANDU: Nepal’s foreign trade surged sharply in the first four months of the fiscal year 2082/83, with exports nearing the NPR 100 billion threshold for the first time in history, while imports climbed above NPR 600 billion, widening the country’s trade deficit despite robust outbound shipments.
According to the Department of Customs, Nepal exported goods worth NPR 93.49 billion between Shrawan and Kartik—a sharp 77.51% increase compared to the same period last fiscal year, when exports totaled NPR 52.67 billion.
The latest figures signal that the record-breaking export performance of last year may be surpassed this year, backed by strong demand for key agro-processing commodities.
Imports Surge to NPR 609.45 Billion
Imports also expanded significantly. In the first four months, Nepal imported goods worth NPR 609.45 billion, up 18.71% from NPR 513 billion during the same period last year.
With both exports and imports rising, Nepal’s total foreign trade volume reached NPR 702.94 billion, marking a 24.18% increase year-on-year.
Trade Deficit Still Deep — Over NPR 515 Billion
Despite export growth, Nepal’s trade deficit deepened by 11.99%, reaching NPR 515.95 billion by the end of Kartik.
The structure of the trade portfolio remains heavily tilted toward imports—86.70% of total trade—while exports account for only 13.30%, despite the rapid growth rate.
What Nepal Is Importing the Most
Several major import items continue to drain foreign currency:
Petroleum products: NPR 92.42 billion
Edible oils (Ghee & vegetable oils): NPR 50.17 billion
Iron & steel: NPR 44.23 billion
Electrical machinery & equipment: NPR 43.38 billion
Vehicles and parts: NPR 37.69 billion
Chemical fertiliser: NPR 25.20 billion
Pharmaceutical products: NPR 14 billion
Soybean Oil Tops Import List — Even Ahead of Diesel
A notable shift in Nepal’s import pattern shows crude soybean oil overtaking fuel products:
Crude Soybean Oil: NPR 37.86 billion
Diesel: NPR 31.89 billion
Petrol: NPR 22.37 billion
LPG Gas: NPR 18.08 billion
Smartphones: NPR 16.15 billion
Gold: NPR 15.72 billion
Export Champions: Soybean Oil Leads Again
Soybean oil also dominates Nepal’s export basket. According to the Department of Customs:
Soybean oil exports: NPR 38.43 billion (No.1 export item)
Large cardamom: NPR 3.97 billion
Carpets: NPR 3.26 billion
Sunflower oil: NPR 2.73 billion
Jute goods: NPR 2.15 billion
Edible oil products continue to shape Nepal’s export story, particularly because of regional market demand and duty structures in India.
India Accounts for the Largest Share of Nepal’s Trade
Nepal’s foreign trade remains overwhelmingly India–centric:
Imports from India: NPR 337 billion
Exports to India: NPR 76.50 billion
China stood as Nepal’s second-largest import partner:
Imports from China: NPR 132 billion
Exports to China: NPR 29 crore (extremely low)
Other key trading partners included:
Argentina: Imports NPR 34.72 billion, negligible exports
UAE: Imports NPR 22.22 billion, exports NPR 66 crore
United States: Imports NPR 8.87 billion, exports NPR 5.97 billion
Why It Matters
Nepal’s export momentum is a positive sign for the manufacturing and agro-processing sectors, especially amid global economic uncertainty and subdued domestic demand.
However, the widening trade deficit, heavy reliance on petroleum imports, ballooning edible oil shipments, and minimal diversification of export items remain structural weaknesses for Nepal’s economy.
Economists argue that without:
export diversification,
improved domestic production capacity, and
policies that reduce import dependency,
Nepal’s external sector will continue to face long-term sustainability risks.
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