Nepal Increases Imports of Telecommunication Equipment and Machinery from China by 52%

According to the Nepal Rastra Bank (NRB) Macroeconomic Report for Mid-September FY 2025/26, Nepal’s imports from China have surged significantly, driven mainly by rising imports of telecommunication equipment and heavy machinery. During the first two months of FY 2025/26, Nepal imported goods worth Rs 65.17 billion from China — marking a 25.1 percent increase from Rs 52.10 billion recorded during the same period of the previous fiscal year.

The report highlights that telecommunication equipment and parts increased by a massive 52.6 percent, reaching Rs 8.06 billion, up from Rs 5.28 billion in FY 2024/25. This sharp growth reflects Nepal’s ongoing expansion of digital infrastructure, 5G network setups, and telecommunications modernization. Similarly, imports of other machinery and parts reached Rs 3.69 billion, maintaining consistent demand for industrial and construction equipment across sectors such as energy, manufacturing, and transport.

Beyond telecom and machinery, imports of chemical fertilizers surged to Rs 13.66 billion, while solar panels (+135%)and PVC compounds (+198%) saw rapid growth as Nepal invests in clean energy and industrial materials. Conversely, consumer-focused imports such as readymade garments (-41.5%), shoes and sandals (-54.4%), and furniture (-42.8%) declined, signaling a shift toward capital goods and technology-driven imports.

Economists interpret these figures as a sign of Nepal’s industrial revival and digital transformation, but they also warn of the growing trade imbalance with China. Despite the positive outlook for industrial growth, the widening import volume — dominated by high-value equipment — continues to pressure Nepal’s foreign exchange reserves.