Rising Import Dependency Pushes Nepal’s Trade Deficit Near NPR 11 Trillion

Nepal’s trade deficit continues to widen amid rising import dependency. According to the Customs Department data up to mid-March (Falgun end) of fiscal year 2024/25, the country recorded a total foreign trade of over NPR 14.40 trillion, resulting in a trade deficit of nearly NPR 11 trillion. During the first eight months, imports reached NPR 12.89 trillion, while exports remained limited to NPR 1.91 trillion. Nepal faced the highest trade deficit with India (over NPR 567 billion) and China (over NPR 264 billion), followed by Argentina, the UAE, and Indonesia. Petroleum products (diesel, petrol, LPG) dominated imports, along with soybean oil, smartphones, iron products, gold, and silver. On the export side, soybean oil, cardamom, carpets, and sunflower oil led the list. Meanwhile, growing dependence on food imports is evident as rice imports alone exceeded NPR 27 billion, signaling increasing pressure on the country’s economy.