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

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.

Nepal’s exports surged 140% in FY 2025/26, reaching Rs. 47.32 billion in two months. Soybean oil alone contributed Rs. 20.4 billion (43% of total exports), followed by palm oil (+318%) and jute goods (+61%). Despite strong momentum, traditional exports like woolen carpets and tea declined. NRB reports robust foreign reserves, record remittances, and macro stability — but urges export diversification for long-term growth.

According to NRB’s Mid-September 2025/26 report, Nepal’s exports to India jumped 139.9%, reaching Rs. 38.35 billion, driven by soybean oil (Rs. 20.4 billion), palm oil (+318%), and jute goods (+61%). Traditional products like tea and zinc sheets declined, but overall trade momentum reflects a strong economic rebound supported by stable macroeconomic conditions and rising remittances.