Nepal’s Services Deficit Improves to USD −96M: ICT and Consulting Shine

Nepal’s services trade deficit narrowed to USD −96.2 million in the first month of FY 2025/26, improving from a deeper shortfall of USD −112.4 million in the same period last year. Data from Nepal Rastra Bank’s Balance of Payments (BoP) shows that rising earnings from ICT services, professional consulting, and business services contributed to the recovery.

The ICT sector stood out, with computer services exports worth USD 10.9 million, posting a healthy net gain of USD 9 million. Similarly, professional and management consulting services earned USD 27.5 million, helping offset deficits in areas like travel, transport, and insurance.

While Nepal continues to face large outflows due to travel (USD −117.2M) and transport services (USD −23M), the rise of ICT and consulting marks a structural shift in the services economy. Economists argue that these sectors could become new growth engines, offering higher value exports beyond traditional labor migration and remittances.

Analysts say targeted policies to expand IT outsourcing, digital exports, and consulting hubs could reduce Nepal’s dependence on imports of education, medical, and tourism services. This would not only improve the services balance but also help create high-value jobs domestically.