Himal Press 
KATHMANDU: The trade deficit widened by 11.22% to Rs 1,098 billion over the first eight months of the fiscal year 2025/26.
Such a deficit stood at Rs 987.39 billion in the same period of the previous fiscal year.
Foreign trade data released by the Department of Customs on Sunday show Nepal imported goods worth Rs 1,289.25 billion between mid-July 2025 and mid-March 2026. Total imports grew by 12.54% during the review period.
However, the country’s export earnings were limited to just Rs 191.11 billion. Total exports grew by 20.83% during the review period. Total exports in the first eight months of 2024/25 stood at Rs 158.17 billion.
Total foreign trade expanded by 13.55% to reach Rs 1,480.36 billion over the eight months of the current fiscal year.
However, some indicators show a slight improvement in the trade structure. The imports-to-exports ratio declined to 6.75 from 7.24, indicating relatively higher export growth than import growth. Similarly, the share of exports in total foreign trade increased to 12.91% from 12.13%. The share of imports, on the other hand, edged down to 87.09% from 87.87%.
The small export basket means the contribution of higher export growth is negligible in the country’s total foreign trade.
While stronger export growth is a positive sign for the country’s external sector, the economy remains heavily dependent on imports, which is why the trade deficit is ballooning.
