KATHMANDU, NOVEMBER 16

Nepal's trade sector showed strong signs of revival in the first three months of the current fiscal year, with merchandise exports nearly doubling compared to the same period last year, according to a Nepal Rastra Bank (NRB) report released today.

The country's exports surged by an impressive 89.6 percent, reaching Rs. 72.78 billion. This growth was largely driven by a massive increase in sales to India, which rose by 137.9 percent. Key export items included soybean oil, palm oil, jute goods, and cardamom. However, exports to China saw a significant decline.

Imports also grew by 19.8 percent to Rs. 468.08 billion, led by increased purchases of crude soybean oil, chemical fertilizer, gold, and vehicles. As a result, Nepal's trade deficit-the gap between what the country imports and what it exports-widened by 12.2 percent to Rs. 395.30 billion.

Despite the growing trade deficit, the country's overall external sector health improved significantly, supported by strong remittance inflows. The current account recorded a healthy surplus of Rs. 237.59 billion, nearly double that of the previous year.

Foreign exchange reserves also saw a notable increase, rising to $21.21 billion by mid-October, up from $19.50 billion in mid-July. Reserves held by the central bank and financial institutions both showed substantial growth, strengthening Nepal's external financial position.