
The NEPSE Journal
Market commentary, data deep-dives, and trading notes from the NEPSE Trading desk.

Nepal’s imports in the first two months of FY 2025/26 surged 16.2% to Rs. 305.15 billion, led by a 68.1% jump in chemical fertilizer imports and Rs. 39.57 billion worth of petroleum products, accounting for 13% of total imports. The spike highlights strong domestic demand and agricultural activity but also raises concerns over the growing trade imbalance and dependence on imported fuel and inputs.

Nepal’s exports to China dropped 38.9% in the first two months of FY 2025/26, totaling Rs. 69 million. Major handicrafts, carpets, and garments declined sharply, while pashmina exports rose 47% to become Nepal’s leading export item to China. NRB attributes the slowdown to logistics issues, weak demand, and limited product diversification.

According to NRB’s Mid-September 2025/26 report, Nepal’s exports to China fell 58.5% to Rs. 123.5 million, with major declines in handicrafts (-91%), woolen carpets (-37%), and garments (-36%). Only pashmina (+47%) and leather goods (+46%) posted gains. The report cites weak Chinese demand, logistical bottlenecks, and lack of product diversification as key reasons behind the downturn.

Nepal’s trade with China contracted 58.5% in the first two months of FY 2025/26, totaling only Rs. 123.5 million. While pashmina exports rose 47% and leather goods increased 46%, major exports such as handicrafts (-91%), carpets (-37%), and garments (-36%) saw sharp declines. NRB data points to weak demand, border bottlenecks, and limited diversification as key challenges to reviving Nepal–China trade.