KATHMANDU, Aug 24: Nepal’s foreign trade has picked up pace again. Data from the first month of the current Fiscal Year (FY) shows that exports nearly doubled compared to the same period last year.
According to the Department of Customs, exports in Shrawan (mid-July to mid-August) rose by 95.75 percent, reaching Rs 23.93 billion. This is the highest ever monthly export figure. Compared to last year, exports increased by Rs 11.71 billion. In July 2024, total exports had stood at only Rs 12.22 billion.
The main export items included soybean oil, plywood, fruits, juice, yarn, carpets, and cardamom. Soybean oil ranked first, with exports worth over Rs 10.5 billion in Shrawan alone. The increase in exports helped reduce the trade deficit, signaling a recovery of the export sector that had been struggling since the COVID period due to low export shares.
In the previous FY 2024/25, exports had also grown by about 82 percent. Goods worth Rs 152.38 billion were exported in FY 2023/24, which rose by Rs. 124 billion to Rs 277.03 billion in FY 2024/25.
Increase in cement exports raises hope in Nepal’s foreign trade
Govinda Prasad Ghimire, president of the Federation of Export Entrepreneurs, attributed this growth mainly to policy improvements and soybean oil exports. He added that exporters have begun to feel some hope.
But this growth may not be sustainable. Nepal does not produce raw soybeans domestically; it imports it, extracts oil, and then re-exports it abroad.
According to the Department of Customs, Nepal’s total foreign trade in Shrawan 2025 amounted to Rs 166.97 billion. Imports also rose slightly, reaching Rs 143.04 billion, a rise of 11.42 percent.
India remains Nepal’s largest trade partner. Imports from India reached Rs 83.54 billion, while exports to India stood at Rs 19.45 billion. China came second, with imports worth Rs 27.99 billion and exports only Rs 54.8 million. Nepal’s trade deficit in Shrawan 2025 stood at Rs 119.10 billion, up 2.55 percent compared to Shrawan 2024, when the deficit was Rs 116 billion.
The largest import item was petroleum products. In Shrawan 2025, Nepal imported petrol worth Rs 5.77 billion, diesel worth Rs 5.89 billion, and cooking gas worth Rs 4.66 billion. In the last fiscal year, Nepal’s total trade deficit reached Rs 1.525 trillion. The deficit was Rs 1.440 trillion in 2023/24, but it rose to Rs 1.527 trillion in 2024/25.
The government has repeatedly said it will work to reduce the trade deficit by increasing domestic production of goods consumed in the country. Nepal currently runs a trade deficit with more than 130 countries. To support exports, the government has adopted a subsidy policy, providing export incentives to around three dozen products, including cement.
To further promote domestic products, marketing, and exports, the government, in cooperation with the private sector, has announced “Made in Nepal” and “Make in Nepal” campaigns. The plan aims to achieve self-reliance in products such as cement, medicine, iron rods, furniture, and footwear, while boosting exports.
