KATHMANDU, FEBRUARY 22

Nepal recorded a trade deficit of Rs 861.38 billion in the last seven months of the current fiscal year, according to data released by the Department of Customs. The country's total foreign trade during this period amounted to Rs 1,115.79 billion.

From the beginning of the fiscal year to the end of Nepali month of Magh, Nepal's imports totaled Rs 988.58 billion, while exports stood at Rs 127.20 billion.

Compared to the same period last year:

• Exports increased by 46.50%
• Imports rose by 10.09%
• Total foreign trade grew by 13.30%

Despite the growth in exports, Nepal's trade deficit widened by 6.20% compared to the previous year. The import-to-export ratio remains significantly imbalanced, with 88.60% of total trade being imports and only 11.40% exports.

Major trade partners and deficits

Nepal's largest trade deficit was recorded with India, amounting to Rs 498.34 billion in the last seven months. The country imported Rs 596.35 billion worth of goods from India, while exports to India stood at Rs 98.75 billion.

Nepal also faced a trade deficit with China, importing Rs 192.45 billion worth of goods while exporting only Rs 2 billion, leading to a deficit of Rs 190.44 billion. Other countries contributing to Nepal's trade deficit include Argentina, the UAE, and Australia.

Trade Surplus with 35 Countries

Despite the overall deficit, Nepal managed a trade surplus with 35 countries, including Afghanistan, Denmark, Russia, Austria, Norway, and the Maldives. Nepal's trade with Afghanistan showed exports of Rs 494.5 million against imports of Rs 12.4 million.

Key Imports and Exports

Top import: Petroleum products remain the most expensive import item for Nepal.

Top export: Soybean oil continues to be Nepal's leading export product.