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

Published on October 26, 2025

According to the Nepal Rastra Bank (NRB) Mid-September 2025/26 Macroeconomic Update, Nepal’s imports from China have increased significantly, underscoring stronger trade relations and higher consumer and industrial demand. The data from Table 20 (Imports of Major Commodities from China) shows that Nepal imported goods worth Rs. 65.17 billion during the first two months of FY 2025/26 — a 25.1% increase compared to Rs. 52.10 billionin the same period of FY 2024/25.

China remains Nepal’s second-largest trading partner, with rising imports in electronic goods, machinery, solar panels, textiles, and fertilizers driving the growth. Total imports from China’s major commodities reached Rs. 48.15 billion, marking a 31.9% rise, while “Other Items” grew by 9.2%, totaling Rs. 17.02 billion.

Key Import Highlights

Telecommunication Equipment and Parts surged by 52.6%, reaching Rs. 8.06 billion, indicating expansion in Nepal’s telecom and IT infrastructure.
Chemical Fertilizer Imports jumped to Rs. 13.66 billion, supporting agricultural demand during the monsoon season.
Electrical Goods recorded a moderate 3.8% growth, totaling Rs. 2.95 billion.
Solar Panels skyrocketed by 135.1%, reaching Rs. 298 million, reflecting Nepal’s ongoing shift toward renewable energy.
P.V.C. Compounds increased sharply by 198.5%, signaling growth in manufacturing and construction activity.
Computer and Parts Imports amounted to Rs. 2.42 billion, showing continued digital infrastructure investment.

However, some traditional goods saw a downturn — readymade garments (-41.5%), shoes and sandals (-54.4%), and metal furniture (-42.8%) — indicating changing import preferences toward higher-value machinery and electronic components.

The sharp rise in imports from China aligns with Nepal’s post-pandemic industrial recovery and construction momentum. Yet, analysts caution that the expanding import bill could pressure Nepal’s trade balance, already weighed down by high petroleum and machinery imports from India.

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.

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

Key Import Highlights

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