Trade deficit rises to Rs 1,256.28 billion despite 72.71% export growth

KATHMANDU: Nepal’s foreign trade witnessed a notable uptick in the first 10 months of the current fiscal year 2024/25, with exports surging by an impressive 72.71%, according to foreign trade data for the first 10 months of fiscal year 2024/25 released by the Department of Customs on Wednesday.

During the period ending mid-May 2025, Nepal exported goods worth Rs 217.91 billion, a sharp rise from Rs 126.17 billion recorded in the same period of the last fiscal year. Imports also increased by 13.11%, reaching Rs 1,474.19 billion, up from Rs 1,303.36 billion in the same period of 2023/24.

The country’s trade deficit increased by 6.72% over the past 10 months to Rs 1,256.28 billion in mid-May. Total foreign trade expanded by 18.37% to Rs 1,692.10 billion.

The Imports-to-Exports ratio fell significantly from 10.33 to 6.77, a 34.51% improvement, suggesting a relative reduction in dependency on imports compared to exports. The share of exports in total trade climbed from 8.83% to 12.88%, an encouraging 45.91% growth, while the share of imports declined slightly from 91.17% to 87.12%, showing a modest rebalancing in Nepal’s trade structure.