Merchandise exports rise 32.2 pc, imports 13.6 pc in seven months: NRB

KATHMANDU: Nepal's merchandise exports rose 32.2% to Rs 168.15 billion during the first seven months of fiscal year 2025/26, according to the macroeconomic and financial situation report released by Nepal Rastra Bank (NRB) on Wednesday. This compares with a growth of 46.5% in the corresponding period of the previous year.

By destination, exports to India and other countries rose 40.3% and 9.4% respectively, while exports to China declined 55.3%. Exports of soyabean oil, cardamom, palm oil, jute goods and shoes and sandals, among others, increased, whereas exports of zinc sheet, particle board, tea, woollen carpet, handicraft goods and other handicrafts, among others, decreased in the review period.

Likewise, merchandise imports grew 13.6% to Rs 1,123.49 billion in the review period, compared with a 10.1% increase a year earlier. Imports from India, China and other countries rose 5.5%, 22.3% and 29.5% respectively. Imports of crude soyabean oil, chemical fertiliser, silver, transport equipment, vehicles and spare parts and gold, among others, increased, whereas imports of hot rolled sheet in coil, edible oil, pulses, MS billet and MS wire rod, bars and coils, among others, decreased.

The total trade deficit widened 10.9% to Rs 955.34 billion during the seven months of 2025/26. Such a deficit had increased by 6.2% in the corresponding period of the previous year. The export‑import ratio improved to 15.0% in the review period from 12.9% a year earlier.

The NRB also reported that merchandise imports from India against payment in convertible foreign currency amounted to Rs 103.92 billion in the review period. That amount was Rs 103.94 billion in the same period of the previous year.

As per the Broad Economic Categories, final consumption goods accounted for 69.7% of total exports, intermediate goods 29.3% and capital goods 1.0% in the review period, compared with 61.8%, 37.4% and 0.8% respectively a year earlier. On the import side, final consumption goods made up 37.0%, intermediate goods 53.8% and capital goods 9.2%, against 39.9%, 51.2% and 8.9% in the same period last year.

In the seventh month of fiscal year 2025/26, the year‑on‑year unit value export price index rose 2.1% while the import price index increased by 0.6%. The terms of trade index improved by 1.4% during the month.