Machinery and Vehicle Imports Deepen Nepal’s Trade Deficit – Over Rs. 60 Billion in Just Three Months

Nepal recorded a trade deficit exceeding Rs. 60 billion in just three months of the current fiscal year (2082/83) due to massive imports of machinery, electrical equipment, and vehicles, according to the Department of Customs.

During the period between mid-July and mid-October 2025, imports under Chapter 84 (Machinery and Mechanical Appliances) reached Rs. 32.07 billion, while Chapter 87 (Vehicles and Parts) accounted for Rs. 29.33 billion. Together, these two categories made up one of the largest import segments in Nepal’s trade portfolio.

Exports from these sectors, however, remained negligible — only Rs. 441 million worth of machinery and Rs. 17 million worth of vehicles were exported during the same period. As a result, the combined trade deficit from these two chapters stood at more than Rs. 61 billion.

Economic experts say this reflects Nepal’s rising dependence on imported industrial and transport goods. Although such imports indicate growing investment in industrial infrastructure, they also add heavy pressure on the country’s foreign currency reserves and overall trade imbalance.

Vehicle imports continue to rise, driven by petrol and diesel-powered cars, motorcycles, and luxury vehicles. While electric vehicle imports are increasing gradually, their share in total imports remains minimal.

Analysts emphasize that reducing such deficits will require long-term strategies focused on domestic industrial capacity, production-based growth, and expansion of electric mobility to lessen reliance on imported machinery and fuel-powered vehicles.