Nepal’s Trade Deficit Widens as Imports Surge 38% in First Quarter of FY 2026/27
Summary
Nepal’s merchandise trade deficit widened sharply in the first quarter of FY 2026/27 as imports jumped 38.18% to Rs 646.78 billion, outpacing a 57.03% rise in exports. Strong remittance inflows and rising foreign exchange reserves, however, continued to support the country’s external sector.
Key Points
- Imports rose 38.18% year-on-year to Rs 646.78 billion in the first quarter of FY 2026/27, while exports increased 57.03% to Rs 114.28 billion.
- The merchandise trade deficit widened 34.71% to Rs 532.49 billion, with India remaining Nepal’s largest trading partner.
- Fuel, crude soybean oil, vehicles, machinery, fertilisers and smartphones were among the biggest import items, while vegetable oils dominated exports.
- NRB data showed strong remittance inflows, a higher current account surplus, stronger foreign exchange reserves and improved FDI inflows.
