Merchandise exports rise 95.7 pc, imports 11.4 pc in 1st month of FY 2025/26

KATHMANDU: Merchandise exports in the country rose by 95.7% to Rs 23.93 billion in the first month of fiscal year 2025/26, after a 9.6% fall in the same period a year earlier, according to the latest macroeconomic and financial situation report released by Nepal Rastra Bank (NRB) on Monday.

Exports to India climbed by 156.7%, while shipments to China and other markets fell by 65.2% and 1.4% respectively. Increases were led by soya bean oil, palm oil, polyester yarn and thread, cardamom and jute goods, but exports of zinc sheet, particle board, woollen carpet, oil cakes and tea declined.

Likewise, merchandise imports grew by 11.4% to Rs 143.04 billion, compared with a 0.6% drop a year earlier. Imports from India rose by 7.5%, from China by 14.1% and from other countries by 20.5%.

Among imports, crude soya bean oil, transport equipment, vehicles and spare parts, rice and paddy, coal and chemical fertiliser increased, while purchases of hot-rolled sheet in coil, edible oil, petroleum products, other machinery and parts, and oil seeds fell.

The trade deficit widened by 2.5% to Rs 119.11 billion, up from a 0.4% rise a year earlier. The export-import ratio improved to 16.7% from 9.5% in mid-August 2024/25.

The report adds that imports from India paid in convertible foreign currency stood at Rs 13.43 billion, down from Rs 13.98 billion in the same month last year.