Solar Panels, Wheat Products, and Chemical Fertilizer Drive Nepal-China Trade Growth

Published on October 26, 2025

According to the Nepal Rastra Bank’s (NRB) Macroeconomic Report for Mid-September FY 2025/26, Nepal’s imports from China surged notably, driven by strong growth in solar panels, wheat products, and chemical fertilizers. The total import value reached Rs 65.17 billion during the first two months of FY 2025/26 — a 25.1% increasecompared to Rs 52.10 billion in the same period of FY 2024/25. This rise underscores China’s growing role as Nepal’s second-largest trading partner and the increasing demand for industrial and renewable-energy products in Nepal.

Imports of chemical fertilizers saw a remarkable rise to Rs 13.66 billion, supporting Nepal’s agriculture sector ahead of the harvest season. Similarly, solar panel imports jumped by an impressive 135%, reaching nearly Rs 300 million, as the country continues investing in renewable and off-grid energy solutions. Wheat products imports also grew by 192.5%, highlighting changing consumption trends and increased demand for processed food products.

In addition to these sectors, imports of PVC compounds (+198%), telecommunication equipment (+52.6%), and electrical goods (+3.8%) contributed significantly to overall trade growth. However, traditional goods such as readymade garments (-41.5%), shoes and sandals (-54.4%), and metal furniture (-42.8%) declined, indicating a shift in import patterns toward capital goods and industrial inputs rather than consumer goods.

This upward trajectory reflects Nepal’s economic recovery and growing investments in technology, energy, and infrastructure, but it also raises concerns about trade imbalance and dependency on Chinese imports. With domestic production still limited, rising imports of high-value goods could strain foreign exchange reserves if export performance does not improve accordingly.

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.

Solar Panels, Wheat Products, and Chemical Fertilizer Drive Nepal-China Trade Growth

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