Challenges in the economy Trade deficit of 861 billion : what is the situation with the top 10 countries!

Nepal’s trade imbalance has continued to widen, reflecting a growing dependence on imports and sluggish export growth. According to the latest trade data for the first seven months of the fiscal year 2081/82 (Mid-July 2024 to Mid-February 2025), Nepal’s total imports have reached NPR 988.58 billion, while exports stand at just NPR 127.20 billion, leading to an enormous trade deficit of NPR 861.38 billion.

Nepal’s trade is significantly dominated by a few key countries, with India and China leading as the top import partners. highlights of the trade figures with major trading nations:

Export Highlights

While Nepal struggles with a high trade deficit, a few countries remain important export destinations for Nepalese goods:

• India: NPR 98.00 billion (largest export destination)

• United States: NPR 7.25 billion

• Germany: NPR 6.90 billion

• United Kingdom: NPR 6.20 billion (only country with a positive trade balance)

• Bangladesh: NPR 1.80 billion

• Japan: NPR 1.65 billion

• France: NPR 1.40 billion

• Canada: NPR 1.25 billion

• Australia: NPR 1.10 billion

The worsening trade deficit underscores Nepal’s over-reliance on imported goods, particularly from India and China. Despite efforts to expand exports, the country’s export sector remains weak, leading to a persistent trade imbalance. Economic analysts stress the urgent need for Nepal to diversify its exports, strengthen domestic industries, and attract foreign investments.

The government is now focused on implementing policies to boost local production, improve trade negotiations, and enhance competitiveness in the global market. However, reducing the trade deficit remains a significant challenge, requiring long-term structural reforms to build a self-sustaining, export-driven economy.