Imports Rise, Exports Fall at Eastern Border: Trade Imbalance Deepens

Kakarbhitta, Nepal’s key eastern trade gateway, is witnessing a shifting dynamic this fiscal year. In the first two months of FY 2082/83, imports have climbed to Rs. 8.19 billion, up by 9% compared to the same period last year. According to Ishwar Kumar Humagain, Information Officer at Mechi Customs Office, the surge represents an additional Rs. 680.8 million worth of goods entering Nepal. Petroleum products, jute, pulses, raw materials for animal feed, vegetables, fruits, and ready-made garments dominate the import list.

However, while imports are rising, exports are shrinking. Only Rs. 3.06 billion worth of goods were shipped abroad, a steep 20.69% decline from last year’s Rs. 3.86 billion. Nepal’s signature products like cardamom, tea, plywood, churpi, and broom grass have lost some ground in international markets.

Despite the dip in exports, the customs office reports positive revenue collection. In just two months, the government earned Rs. 2.62 billion in revenue, an 8.62% increase compared to the same period last year. Analysts warn, however, that the growing trade imbalance — rising imports against shrinking exports — could pressure Nepal’s foreign exchange reserves if the trend continues.