Trade deficit widens 26.02% to Rs 324.93 billion in two months

KATHMANDU: Trade deficit expanded by 26.02% to Rs 324.93 billion over the first two months of the current fiscal year, despite a 61.86% increase in exports.

Foreign trade data released by the Department of Customs show that Nepal exported goods worth Rs 76.58 billion in the first two months of 2026/27, up from Rs 47.31 billion in the same period of the previous fiscal year.

Imports rose by 31.58% to Rs 401.51 billion in the first two months of the current fiscal year, up from Rs 305.15 billion in the same period of the previous fiscal year.

Similarly, total foreign trade increased by 35.64% to Rs 478.11 billion in the first two months of 2026/27. In the same period of the previous fiscal year, the country’s total foreign trade stood at Rs 352.47 billion.

The share of exports in total foreign trade improved to 16.02% during the review period, up from 13.42% in the same period of the previous fiscal year. Likewise, the share of imports in total foreign trade declined slightly to 83.98%, compared with 86.58% in the same period of the previous fiscal year.

Nepal enjoyed a trade surplus with only 29 out of more than 125 trading partners. Its highest trade surplus was with Denmark at Rs 214.52 million, followed by Austria (Rs 67.47 million), Niger (Rs 38.14 million), Norway (Rs 35.74 million) and Iceland (Rs 14.10 million).

Nepal suffered its largest trade deficit of Rs 155.63 billion with India in the first two months. Nepal imported goods worth Rs 221.08 billion from India during the period, while exports to the southern neighbor stood at just Rs 65.44 billion.

Nepal also recorded a trade deficit of Rs 76.1 billion with China, followed by Argentina (Rs 28.17 billion) and Saudi Arabia (Rs 9.84 billion).

India was Nepal’s largest export market during the review period, absorbing goods worth Rs 65.44 billion. The US, Germany, the United Kingdom and Australia followed, with exports worth Rs 4.15 billion, Rs 966.01 million, Rs 695.52 million and Rs 604.76 million, respectively.

The southern neighbor was also Nepal’s largest source of imports during the review period, supplying goods worth Rs 221.08 billion. China (Rs 76.4 billion), Argentina (Rs 28.2 billion), Saudi Arabia (Rs 9.84 billion) and the US (Rs 6.57 billion) were other major sources of imports.

Top five imports

Crude soybean oil — Rs 38.05 billion
Diesel — Rs 28.03 billion
Petrol — Rs 16.13 billion
LPG — Rs 16.02 billion
Urea — Rs 13.08 billion

Top five exports

Soybean oil — Rs 36.04 billion
Jute — Rs 2.23 billion
Sunflower oil — Rs 2.08 billion
Palm oil — Rs 1.93 billion
Big cardamom — Rs 1.65 billion