Trade deficit widens 1.78% to Rs 237.45 billion in two months

KATHMANDU: Nepal’s trade deficit widened by 1.78% during the first two months of the current fiscal year 2024/25.

Data released by the Department of Customs on Tuesday shows that the country registered a trade deficit of Rs 237.45 billion compared to Rs 233.30 billion in the same period of the previous fiscal year.

Total imports for the period stood at Rs 262.54 billion, a modest increase of 1.08% over last year’s Rs 259.75 billion. Conversely, exports dropped by 5.12%, falling from Rs 26.45 billion to Rs 25.09 billion.

Nepal’s foreign trade expanded by 0.50% to Rs 287.63 billion in the review period, up from Rs 286.20 billion in the same period of the previous fiscal year.

Data shows that the imports-to-exports ratio widened to 10.46 from 9.82 last year, as exports contributed only 8.72% to the total trade—a 5.59% decline. Imports, on the other hand, accounted for 91.28% of total trade, marking a slight increase of 0.57%.

Nepal suffered the largest trade deficit with India during the review period. Nepal imported goods worth Rs 160.65 billion from India, while its exports to the southern neighbour were limited to Rs 15.98 billion, resulting in a trade deficit of Rs 144.66 billion.

Nepal enjoyed the highest trade surplus with Afghanistan. During the period, Nepal exported goods worth Rs 209.46 million, while imports from the West Asian nation stood at nil.

Top 5 Imports
Petroleum products were among the country’s top five imports in the review period. Data shows that Nepal imported diesel worth Rs 13.65 billion, petrol worth Rs 11.06 billion, and liquefied petroleum gas worth Rs 9.42 billion in the first two months of 2024/25.

Ferrous products obtained by direct reduction of iron ore, in lumps, pellets, or similar forms, and urea fertilizers were other major imports in the review period, with total import values of Rs 7.74 billion and Rs 7.66 billion, respectively.

Top 5 Exports
Hand-knotted carpets were Nepal’s largest export in the review period, with exports valued at Rs 1.3 billion. Next were tea and juice, with total export values of Rs 1.08 billion and Rs 926.3 million, respectively.

Single yarn and plywood were also among the country’s top exports during the review period, with total export values of Rs 856.12 million and Rs 819.73 million, respectively.