Kathmandu, Agu.24: In the first month of the current fiscal year 2025/26 (July 16–August 16, 2025), Nepal experienced a trade deficit with 86 countries. According to data released by the Customs Department, Nepal traded with a total of 111 countries, but only 25 countries recorded a trade surplus.
During the same period last year, Nepal traded with 103 countries, with 90 of them resulting in a trade deficit. Only 13 countries recorded a surplus.
Among the countries with trade deficits, the largest deficit is with India, followed by China, Argentina, and Qatar. Other countries include the UAE, Indonesia, and the United States.
According to the data, Nepal’s trade deficit with India stands at NPR 64.08 billion, with China at NPR 27.94 billion, Argentina at NPR 9.12 billion, Qatar at NPR 2.46 billion, the UAE at NPR 1.83 billion, and Indonesia at NPR 1.82 billion.
Trade Deficit with India Decreases
India is the country with which Nepal has the highest trade volume and deficit. In Shrawan 2082 (July 16–August 16, 2025), total trade with India reached NPR 102.99 billion, including imports of NPR 83.54 billion and exports of NPR 19.45 billion. This results in a trade deficit of NPR 64.88 billion with India.
During the same period last year, total trade with India was NPR 85.26 billion, including imports of NPR 77.68 billion and exports of NPR 7.57 billion, resulting in a trade deficit of NPR 70.10 billion.
This indicates that total trade with India increased by NPR 17.73 billion compared to last year, while the trade deficit decreased by more than NPR 6 billion.
The decrease in trade deficit is attributed to exports of edible oil, which totalled NPR 12.31 billion, including NPR 10.69 billion of castor oil alone.
Trade with China Rises Despite Border Closures
China is Nepal’s second-largest trade partner. Compared to the previous year, trade with China increased in the first month of the current fiscal year. Even though major border points for trade were disrupted due to floods and landslides, trade still rose, according to the Customs Department.
On July 8, 2025 (Asar 24, 2082), flooding from China forced the closure of the Rasuwa Gadhi border. The Tatopani border has also been repeatedly disrupted. Despite this, trade with China increased.
In Shrawan 2082 (July 16–August 16, 2025), total trade with China reached NPR 28.05 billion, including imports of NPR 27.996 billion and exports of NPR 0.548 billion. The trade deficit with China stood at NPR 27.94 billion.
During the same period last year (Shrawan 2081 / July 17–August 16, 2024), total trade with China was NPR 24.70 billion, including imports of NPR 24.54 billion and exports of NPR 0.157 billion, resulting in a trade deficit of NPR 24.38 billion.
Overall Trade Deficit Increases by 2.55%
According to the Customs Department, despite significant improvement in exports, the large volume of imports caused the overall trade deficit to rise. Last year, the trade deficit in the first month was NPR 116.15 billion; this year, it increased by 2.55% to NPR 119.10 billion.
Compared to the previous year, imports rose by 11.42% while exports increased by 95.75%. In Shrawan 2082 (July 16–August 16, 2025), imports totalled NPR 143 billion, compared to NPR 128.37 billion in the same month of the previous fiscal year, showing an 11.42% increase. Exports reached NPR 23.93 billion, compared to NPR 12.22 billion last year.
Revenue Collection Also Rises
Revenue collected at customs points in one month totalled NPR 36.81 billion. According to the Customs Department, in Shrawan 2082 (July 16–August 16, 2025), NPR 36.814 billion was collected, compared to NPR 34.697 billion in the same month of the previous fiscal year.
People’s News Monitoring Service
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