Solar Panels, Wheat Products, and Chemical Fertilizer Drive Nepal-China Trade Growth

According to the Nepal Rastra Bank’s (NRB) Macroeconomic Report for Mid-September FY 2025/26, Nepal’s imports from China surged notably, driven by strong growth in solar panels, wheat products, and chemical fertilizers. The total import value reached Rs 65.17 billion during the first two months of FY 2025/26 — a 25.1% increasecompared to Rs 52.10 billion in the same period of FY 2024/25. This rise underscores China’s growing role as Nepal’s second-largest trading partner and the increasing demand for industrial and renewable-energy products in Nepal.

Imports of chemical fertilizers saw a remarkable rise to Rs 13.66 billion, supporting Nepal’s agriculture sector ahead of the harvest season. Similarly, solar panel imports jumped by an impressive 135%, reaching nearly Rs 300 million, as the country continues investing in renewable and off-grid energy solutions. Wheat products imports also grew by 192.5%, highlighting changing consumption trends and increased demand for processed food products.

In addition to these sectors, imports of PVC compounds (+198%), telecommunication equipment (+52.6%), and electrical goods (+3.8%) contributed significantly to overall trade growth. However, traditional goods such as readymade garments (-41.5%), shoes and sandals (-54.4%), and metal furniture (-42.8%) declined, indicating a shift in import patterns toward capital goods and industrial inputs rather than consumer goods.

This upward trajectory reflects Nepal’s economic recovery and growing investments in technology, energy, and infrastructure, but it also raises concerns about trade imbalance and dependency on Chinese imports. With domestic production still limited, rising imports of high-value goods could strain foreign exchange reserves if export performance does not improve accordingly.