Fiscal Nepal
First Business News Portal in English from Nepal
KATHMANDU: Nepal’s import trade has surged to a six-month high in Pus (mid-December to mid-January), reaching NPR 1.73 billion, according to the Department of Customs. This marks the highest monthly import figure in the first half of the current fiscal year.
Customs data shows the import trend over the past months as follows: Sawan (mid-July to mid-August) recorded NPR 1.43 billion, Bhadra (mid-August to mid-September) NPR 1.62 billion 11 crore, Ashoj (mid-September to mid-October) NPR 1.62 billion 92 crore, Kartik (mid-October to mid-November) NPR 1.41 billion, and Mangsir (mid-November to mid-December) NPR 1.57 billion.
Cumulatively, Nepal imported goods worth NPR 9.39 billion in the first six months of the current fiscal year, a 14.18 percent increase compared to NPR 8.22 billion during the same period last year.
On the export front, growth remains notable but more modest. Exports from Sawan to Mangsir reached NPR 1.42 billion, including NPR 26 billion in Pus alone. By comparison, the previous Mangsir recorded NPR 23 billion in exports. Overall, exports in the first six months have increased by 43.77 percent over the same period last year.
Trade analysts say the rising import figures reflect a recovering domestic demand for consumer goods, industrial raw materials, and capital goods, while the export growth, though significant, indicates that Nepal still faces structural challenges in scaling production for global markets.
“The import surge is a double-edged sword,” said Shyam Prasad Bhandari, director general of the Department of Custom. “On one hand, it reflects economic dynamism and rising consumer confidence. On the other, it underscores Nepal’s dependency on imports, particularly for essential industrial and consumer products. Strengthening domestic production and export diversification remains critical.”
The data also highlights a widening trade gap. While imports in six months totaled NPR 9.39 billion, exports were only NPR 1.42 billion. This imbalance underscores the persistent trade deficit issue, a structural challenge in Nepal’s economic framework.
The Department of Customs emphasizes that the import rise is partly seasonal, driven by festive demand and year-end procurement by businesses. Meanwhile, exports are supported by sectors such as textiles, handicrafts, and agro-products, although these remain constrained by limited production capacity and international market access challenges.
Economic experts warn that while a rising import trend can stimulate domestic consumption and investment, it also requires careful macroeconomic management to avoid excessive pressure on foreign reserves and exchange rates.
Nepal’s trade scenario in the first half of the fiscal year shows a dynamic yet delicate balance: robust import growth signaling economic activity, and a strong export increase indicating gradual competitiveness in certain sectors, but overall trade deficit pressures persist.
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