Merchandise exports rise 89.6 pc to Rs 72.78bn in Q1; trade deficit widens to Rs 395.30bn

KATHMANDU: Merchandise exports in the country rose by 89.6% to Rs 72.78 billion in the first three months of current fiscal year 2025/26, against a 6.1% decrease in the same period of the previous year, according to the latest macroeconomic and financial situation report released by Nepal Rastra Bank (NRB) on Sunday.

Destination‑wise, exports to India and other countries increased 137.9% and 3.8% respectively, while exports to China decreased 66.1%. Exports of soyabean oil, palm oil, jute goods, cardamom and polyester yarn and thread, among others, increased, while exports of zinc sheet, particle board, tea, woollen carpet and oil cakes, among others, decreased in the review period.

During the three months of 2025/26, merchandise imports increased 19.8% to Rs 468.08 billion against a decrease of 4.2% a year ago. Destination‑wise, imports from India, China and other countries increased 7.5%, 33.4% and 46.5% respectively. Imports of crude soyabean oil, chemical fertiliser, gold, transport equipment, vehicle and spare parts, and telecommunication equipment and parts, among others, increased, while imports of hot‑rolled sheet in coil, edible oil, garlic, oil seeds and petroleum products, among others, decreased in the review period.

Total trade deficit increased 12.2% to Rs 395.30 billion during the three months of 2025/26. Such a deficit had decreased 4.0% in the corresponding period of the previous year. The export‑import ratio increased to 15.5% in the review period from 9.8% in the corresponding period of the previous year.

During the three months of the current fiscal year, merchandise imports from India against payment in convertible foreign currency amounted to Rs 40.79 billion. Such an amount was Rs 44.13 billion in the same period of the previous year.