Foreign trade nears Rs 9 trillion in five months, deficit remains wide

Kathmandu: Nepal conducted foreign trade worth nearly Rs 9 trillion during the first five months of the current fiscal year, reflecting a rise in both imports and exports but also a persistent trade imbalance.

According to data released by the Department of Customs, Nepal’s total foreign trade from mid-July (Shrawan) to mid-December (Mangsir) stood at Rs 882.69 billion. This figure includes the combined value of goods imported into and exported from the country during the period.

Compared to the same five-month period of the previous fiscal year, imports rose by 15.83 percent. In absolute terms, Nepal imported goods worth Rs 766.18 billion from various countries during these five months, underlining the economy’s continued dependence on foreign products.

Exports, meanwhile, totalled Rs 116.50 billion over the same period. This represents a sharp year-on-year increase of 58.17 percent, indicating a notable improvement in export performance, albeit from a relatively low base.

Despite the growth in exports, Nepal recorded a foreign trade deficit of Rs 649.68 billion in the first five months of the fiscal year, as imports continued to far outstrip exports.

Petroleum products accounted for the largest share of imports during this period. Nepal imported petroleum products of all types worth Rs 108.03 billion. This included diesel worth Rs 45.60 billion, petrol worth Rs 27.33 billion, cooking gas worth Rs 22.39 billion, aviation fuel worth Rs 8.34 billion, and petroleum bitumen worth Rs 4.34 billion.

After petroleum products, crude soybean oil was imported in large volumes, with imports valued at Rs 39 billion. Other major imports included gold worth Rs 15.72 billion, mobile phones worth Rs 15.04 billion, and rice worth Rs 6.88 billion.

On the export side, soybean oil dominated Nepal’s overseas sales. During the five-month period, soybean oil exports alone were valued at Rs 46.55 billion, making it the country’s top export item. This was followed by exports of synthetic or woven fabrics worth Rs 1.33 billion and plywood worth Rs 1.32 billion.