Nepal’s Imports Rise 11.4%: Strong Consumption Amid Uncertainty

Nepal’s total imports in the first month of 2025/26 increased by 11.4%, reaching Rs. 143.04 billion compared to Rs. 128.37 billion in the same period last year. This growth comes despite ongoing political instability, economic uncertainty, and liquidity challenges in the domestic market, indicating that consumption demand remains strong.

Experts say the rise in imports reflects both consumer and industrial demand. Food items like crude soyabean oil (+707.9%), rice (+45.9%), and vegetables (+48.4%) recorded exceptional growth, showing heavy dependence on foreign agro products. Similarly, coal imports (+53.2%) surged due to cement and brick industries, while gold (+24.5%)imports rose on safe-haven demand and cultural consumption.

At the same time, some categories saw declines: electrical goods (-31.2%), garments (-18.3%), machinery (-14.7%), telecom (-8.3%), and petroleum (-5.6%). Economists argue that these declines reflect weak investment, liquidity shortages, and shifting consumer behavior, while the overall rise shows Nepal’s dependency on foreign supply chains for essential commodities.

Analysts warn that while rising imports indicate strong demand, they also worsen Nepal’s trade deficit and strain foreign exchange reserves. The challenge for policymakers will be balancing consumption-driven growth with strategies to boost domestic production, diversify exports, and reduce dependency on external supply.