Nepal’s Import Declines: Electrical Goods Down 31%, Garments Down 18%

Nepal’s trade figures for the first month of 2025/26 reveal significant drops in several major import categories, suggesting shifting consumer behavior, industrial cycles, and policy impacts.

The sharpest fall was in electrical goods imports (-31.2%), dropping to Rs. 1.26 billion. Analysts link this to weaker consumer demand, tighter liquidity in banks, and government restrictions on non-essential imports. Similarly, readymade garments (-18.3%) saw a steep decline, reflecting the rise of local brands, thrift fashion, and reduced household spending power.

Other machinery imports fell by 14.7%, showing a slowdown in new industrial investments and reduced demand for heavy equipment. Telecommunication equipment imports dropped by 8.3%, highlighting slower digital infrastructure expansion and market saturation in urban areas.

Even petroleum imports decreased by 5.6%, despite remaining the top import item. This was largely due to lower global prices, the gradual rise of hydropower use, and the adoption of electric vehicles, which have begun to reduce Nepal’s fuel dependency.

Economists note that while these declines help ease the trade deficit, they also signal sluggish consumer demand, slower industrial growth, and shifting patterns in technology and energy use. The challenge for Nepal is to balance reduced imports with stronger domestic production to avoid long-term economic slowdown.