Trade deficit widens 10.15% to Rs 797 billion in six months

KATHMANDU: Trade deficit widened by 10.15% to Rs 797.00 billion over the first half of the current fiscal year.

According to the Department of Customs, imports rose by 14.18% to Rs 939.02 billion. In contrast, exports surged by 43.76% to Rs 142.02 billion, marking one of the strongest half-year export performances in recent years. However, a small export base meant the trade deficit widened despite strong export growth.

Total foreign trade expanded by 17.36%, reaching Rs 1.08 trillion, up from Rs 921.16 billion in the corresponding period of the previous fiscal year.

India was Nepal’s largest trading partner in the review period, accounting for the largest share in both exports and imports. During the period, Nepal imported goods worth Rs 532.45 billion from its southern neighbor, while its exports totaled Rs 115.74 billion. Similarly, Nepal imported goods worth Rs 196 billion from China and exported goods worth only Rs 640.91 million due to the obstruction of major customs points.

However, a positive shift is visible in trade composition as the imports-to-exports ratio improved to 6.61 from 8.32 in the review period of the past fiscal year. Similarly, the share of exports in total trade rose to 13.14% in the first half of the current fiscal year from 10.72% in the same period last year.

Nepal enjoyed a trade surplus with only 33 out of more than 150 trading partners.