Nepal’s Foreign Trade Crosses Rs 2.4 Trillion, Exports Surpass Rs 300 Billion

KATHMANDU: Nepal’s total foreign trade crossed the Rs 2.4 trillion mark in the last fiscal year, reaching Rs 2.411 trillion in fiscal year 2025/26 (FY 2082/83), according to data from the Department of Customs.

The country’s total foreign trade increased by nearly 16 percent compared to the previous fiscal year, making FY 2025/26 the largest year in Nepal’s foreign trade history.

Nepal’s foreign trade had previously reached its highest level in FY 2021/22, before declining in subsequent years. In FY 2024/25, the total size of the country’s foreign trade stood at around Rs 2.081 trillion.

The latest customs data show that both imports and exports increased during the review period, although the country continues to face a substantial trade deficit.

Exports cross Rs 315 billion

Nepal exported goods worth Rs 315 billion in FY 2025/26, the highest export value recorded in recent years.

The country’s exports increased by 13.81 percent compared to the previous fiscal year, when Nepal exported goods worth Rs 277 billion.

The sharp increase in soybean oil exports was a major factor behind the overall growth in Nepal’s exports.

According to the Department of Customs, soybean oil alone accounted for exports worth Rs 128 billion during the last fiscal year.

Nepal imports crude soybean oil from third countries, processes it domestically and exports the refined product primarily to the Indian market. The expansion of this trade significantly boosted Nepal’s total export figures.

Cardamom was the second-largest export item during the fiscal year. Nepal exported cardamom worth Rs 12.64 billion in FY 2025/26, up significantly from Rs 7.68 billion recorded in the previous fiscal year.

The growth in exports of soybean oil and cardamom contributed substantially to the rise in Nepal’s overall export earnings.

Imports remain dominant

Despite the growth in exports, imports continue to account for the overwhelming majority of Nepal’s foreign trade.

Nepal imported goods worth Rs 2.096 trillion in FY 2025/26. Imports accounted for 86.93 percent of the country’s total foreign trade, while exports represented only 13.07 percent.

The country’s trade deficit stood at Rs 1.781 trillion during the fiscal year.

The import-export ratio stood at 6.65, meaning Nepal imported goods worth Rs 6.65 for every Rs 1 worth of goods it exported.

Nepal’s foreign trade in FY 2025/26

• Imports: Rs 2.096 trillion
• Exports: Rs 315 billion
• Total foreign trade: Rs 2.411 trillion
• Trade deficit: Rs 1.781 trillion
• Import-export ratio: 6.65
• Share of imports: 86.93 percent
• Share of exports: 13.07 percent

Fuel remains a major import burden

Fuel products continued to account for a significant share of Nepal’s import bill during the fiscal year.

According to customs data, Nepal spent around Rs 172 billion on diesel imports alone in FY 2025/26.

The country also spent approximately Rs 98 billion on imports of crude soybean oil, which is later processed and exported as refined soybean oil.

Similarly, Nepal imported petrol worth Rs 77.26 billion and liquefied petroleum gas (LPG) worth Rs 60.28 billion during the fiscal year.

The figures highlight Nepal’s continued dependence on imported petroleum products and other essential commodities, which remains a major factor behind the country’s persistent trade deficit.

India remains Nepal’s largest trading partner

India and China continued to dominate Nepal’s foreign trade, with India remaining the country’s largest trading partner.

Nepal imported goods worth Rs 1.21 trillion from India during FY 2025/26. In comparison, Nepal’s exports to the Indian market stood at Rs 258 billion.

The figures indicate a significant trade imbalance between Nepal and India, with imports from the southern neighbor substantially exceeding exports.

China was Nepal’s second-largest trading partner. Nepal imported goods worth Rs 425 billion from China during the fiscal year.

However, Nepal’s exports to China remained extremely low, amounting to only Rs 1.89 billion.

The huge gap between imports and exports with China underscores the persistent trade imbalance in Nepal-China trade.

Overall, Nepal’s foreign trade crossed a record Rs 2.4 trillion in FY 2025/26, driven by strong import growth and a significant increase in exports, particularly soybean oil and cardamom.

However, the country’s export sector remains relatively small compared to its import requirements. With imports accounting for nearly 87 percent of total foreign trade and the trade deficit reaching Rs 1.781 trillion, Nepal continues to face the challenge of diversifying its export basket and expanding production-oriented industries to reduce its dependence on imports.