Nepal’s Fuel and Fertilizer Imports Jump as Petroleum and Chemical Fertilizer Rise by 68%

Published on October 26, 2025

Nepal’s import bill has seen a sharp increase in the first two months of FY 2025/26, driven largely by surging imports of petroleum products and chemical fertilizers, according to the latest Nepal Rastra Bank (NRB) data. Total imports reached Rs. 305.15 billion, marking a 16.2% year-on-year rise, with fuel and fertilizer emerging as two of the most significant contributors to this growth.

The data shows that petroleum products continue to dominate Nepal’s import structure, totaling Rs. 39.57 billion and accounting for 13% of the total import share. This marks a 2.2% rise compared to the same period of FY 2024/25. The increase is attributed to higher global fuel prices, seasonal consumption demand, and continued reliance on fuel-based energy and transport systems.

At the same time, chemical fertilizer imports surged dramatically by 68.1%, reaching Rs. 16.17 billion within just two months. This spike reflects active government procurement to ensure sufficient fertilizer supply ahead of the main agricultural season and an uptick in demand from farmers preparing for winter crops. The rise also indicates a rebound in Nepal’s agricultural sector, which had previously struggled due to delayed fertilizer supply and global shortages.

Other import categories showing significant increases include transport equipment and vehicles (+31.7%), telecommunication equipment (+29.1%), and aircraft spare parts (+357.7%), all signaling a broader rebound in domestic investment and infrastructure development.

Despite this import surge, the rising fuel and fertilizer bills are likely to widen Nepal’s trade deficit, even though remittance inflows and foreign exchange reserves remain strong. Economists warn that continued dependence on imported energy and fertilizers poses a long-term risk to Nepal’s external stability, urging policymakers to accelerate the shift toward renewable energy and domestic fertilizer production to reduce import dependency.

NRB Report: Labour Migration to Saudi Arabia and Qatar Declines, Japan and Oman Surge

Overall, Nepal’s foreign-employment market continues to grow, though the direction of flow is changing. Declines in Saudi Arabia and Qatar are offset by sharp increases in Japan, Oman, and non-traditional markets, marking a gradual transition toward higher-skill and diversified overseas employment opportunities.

UAE Remains Top Job Destination for Nepali Workers with 37,381 Migrants in 2025/26

In FY 2025/26, the UAE remained Nepal’s top job destination, hosting 37,381 Nepali workers in the first two months alone — a 40% year-on-year increase. The Gulf region continues to absorb the majority of Nepali labor, with strong growth also seen in Japan and Cyprus. Total labor migration approvals (new and renewal) exceeded 136,000 during the review period.

Nepal’s Foreign Employment Rises 17.9% in FY 2025/26 – Over 90,000 Workers Leave in Two Months

In the first two months of FY 2025/26, Nepal sent 90,198 new workers abroad, up 17.9% year-on-year. The UAE, Saudi Arabia, and Qatar remained the top destinations, while Japan and Cyprus showed growth. Including renewals, total foreign employment reached 1.36 lakh workers, highlighting Nepal’s ongoing dependence on labor migration for income and remittance.

NRB Report: Nepal’s Trade with China Expands Sharply as Industrial Imports Rise 32%

Nepal’s trade with China surged in early FY 2025/26, with imports up 25.1 percent to Rs 65.17 billion, led by a 32 percent rise in industrial imports. Key drivers included telecommunication equipment, fertilizers, solar panels, and machinery, marking a shift toward industrial investment — but also highlighting growing trade imbalance concerns.

Nepal Increases Imports of Telecommunication Equipment and Machinery from China by 52%

Nepal’s imports from China climbed to Rs 65.17 billion in the first two months of FY 2025/26, up 25 percent year-on-year, led by a 52.6 percent rise in telecommunication equipment and strong demand for industrial machinery. The surge reflects rising investments in technology and infrastructure but also adds to Nepal’s trade-deficit challenge.

Solar Panels, Wheat Products, and Chemical Fertilizer Drive Nepal-China Trade Growth

In FY 2025/26, Nepal’s imports from China climbed 25%, totaling Rs 65.17 billion, driven mainly by solar panels, wheat products, and chemical fertilizers. The surge highlights industrial recovery and the country’s push toward renewable energy, though it also increases Nepal’s trade deficit risk due to heavy reliance on Chinese imports.

NRB Data: Nepal’s Imports from China Reach Rs 65.2 Billion in Two Months, Up 25%

In the first two months of FY 2025/26, Nepal’s imports from China climbed 25 percent, totaling Rs 65.2 billion. Growth was led by telecom equipment, fertilizers, solar panels, and PVC compounds, showing rising industrial and technology demand. While the expansion reflects economic momentum, it also deepens Nepal’s import dependency and trade-deficit concerns.

Nepal’s Imports from China Surge 25.1% in FY 2025/26 – Electronics and Machinery Lead Growth

Nepal’s imports from China climbed 25.1% in the first two months of FY 2025/26, reaching Rs. 65.17 billion, led by telecom equipment, fertilizers, machinery, and solar panels. This surge cements China’s role as Nepal’s second-largest trade partner and reflects rising industrial and technological demand.

Nepal Sees Import Boost in Vehicles (+33%) and Rice/Paddy (+68%) from India in 2025/26

In FY 2025/26, Nepal’s imports from India rose 8% to Rs. 173.54 billion, driven by strong growth in vehicle imports (+33%) and rice/paddy imports (+68%). The rise indicates revived consumer demand and agricultural dependency but also reinforces concerns about Nepal’s widening trade deficit with India.