Foreign Trade Surges in First Month of FY 2082/83, But Trade Deficit Still High

Nepal recorded foreign trade worth over NPR 166 billion in just the first month of the current fiscal year 2082/83. According to the data published by the Department of Customs on Friday, foreign trade in the month of Shrawan alone increased by 18.75 percent compared to the same period last year.

During the review period, Nepal imported goods worth NPR 143.04 billion, while exports stood at only NPR 23.93 billion. In the same month last year, imports were NPR 128.37 billion, and exports were NPR 12.22 billion. This shows imports rose by 11.42 percent, while exports saw a remarkable rise of 95.75 percent year-on-year.

Despite the surge in exports, Nepal’s trade deficit remains high. In the first month alone, the country suffered a trade deficit of NPR 119.10 billion, compared to NPR 116 billion in the same month last year — an increase of 2.55 percent.

According to the Department of Customs, the import–export ratio during the review month stood at 5.98 percent. Imports accounted for 85.67 percent of total trade, while exports made up only 14.33 percent.

Experts note that while the sharp rise in exports is a positive development, Nepal still faces a serious challenge in reducing its massive trade deficit due to the overwhelming share of imports.