Nepal’s Imports Surge 16.2% in FY 2025/26 – Petroleum Products Lead with 13% Share

Nepal’s total imports have surged in the first two months of FY 2025/26, reflecting renewed consumer and industrial demand, according to the latest Nepal Rastra Bank (NRB) Mid-September 2025/26 report. The country imported goods worth Rs. 305.15 billion, up by 16.2% compared to Rs. 262.54 billion during the same period of the previous fiscal year. This increase, driven largely by petroleum, vehicles, fertilizers, and telecommunication equipment, highlights a steady rebound in domestic economic activity after a period of slowed trade growth.

The data shows that petroleum products remain Nepal’s largest import item, totaling Rs. 39.57 billion, which accounts for 13% of total imports. Imports of transport equipment, vehicles, and spare parts surged by 31.7% to Rs. 20.58 billion, reflecting increased vehicle demand from businesses and consumers. Similarly, chemical fertilizer imports rose sharply by 68.1% to Rs. 16.18 billion, likely due to higher agricultural demand and advance government procurement ahead of the main planting season.

Other major sectors also showed strong import growth. Telecommunication equipment and parts increased by 29.1%, while aircraft spare parts saw an extraordinary 357.7% jump, indicating expanded maintenance and fleet upgrades by Nepali airlines. Imports of electrical equipment grew by 13.9%, suggesting active infrastructure and energy sector investment. Meanwhile, gold imports more than doubled by 114.7%, reaching Rs. 3.42 billion, as global gold prices stabilized and domestic demand for jewelry surged during the festival season.

However, some categories experienced a decline. Imports of readymade garments fell by 19.7%, and thread importsdecreased by 3.9%, signaling lower manufacturing and textile activity. Medicine imports also slightly dipped by 2%, possibly reflecting overstocking from earlier quarters. Despite these minor contractions, the overall import trend remains upward, supported by robust liquidity, strong remittance inflows, and stable foreign exchange reserves — which have reached Rs. 2.88 trillion (USD 20.41 billion).

The top 20 commodities accounted for 61.5% of total imports, amounting to Rs. 187.57 billion, while other items made up the remaining 38.5%. Analysts believe this steady rise in imports underscores Nepal’s gradual post-pandemic recovery but also warns of a growing trade deficit due to heavy reliance on imported petroleum and finished goods. Experts emphasize the need for Nepal to diversify its domestic production, encourage renewable energy sources, and expand exports to achieve a more sustainable trade balance in the long term.