Kathmandu: Nepal’s merchandise exports increased by 88.6 percent, reaching Rs. 47.32 billion during the first two months (Mid-July to Mid-September) of the fiscal year 2025/26, according to the Current Macroeconomic and Financial Situation of Nepal report published by the Nepal Rastra Bank (NRB). This marks a sharp turnaround from a 5.1 percent decline recorded during the same period last year.
Destination-wise, exports to India rose significantly by 139.9 percent, while exports to other countries inched up by 0.4 percent. In contrast, exports to China declined by 58.5 percent.
The report noted an increase in exports of soybean oil, palm oil, jute goods, cardamom, and noodles, while exports of zinc sheets, particle boards, tea, woolen carpets, and oil cakes decreased.
During the same period, merchandise imports rose by 16.2 percent to Rs. 305.16 billion, compared to a 1.1 percent increase a year ago. Imports from India, China, and other countries grew by 8.0 percent, 25.1 percent, and 33.4 percent, respectively.
Imports of crude soybean oil, chemical fertilizers, transport equipment, vehicles and spare parts, aircraft spare parts, and telecommunication equipment increased, while imports of hot rolled sheets in coils, edible oils, readymade garments, oilseeds, and garlic declined.
As a result, Nepal’s total trade deficit widened by 8.6 percent to Rs. 257.84 billion, compared to a 1.8 percent increase during the same period last year. The export-import ratio improved to 15.5 percent, up from 9.6 percent in the corresponding period of the previous year.
Merchandise imports from India against payment in convertible foreign currency stood at Rs. 27.75 billion, slightly down from Rs. 29.93 billion a year earlier.
By Broad Economic Categories (BEC), final consumption goods accounted for 69.3 percent of total exports, followed by intermediate goods (29.9 percent) and capital goods (0.8 percent). In the same period last year, these shares stood at 45.6 percent, 53.2 percent, and 1.2 percent, respectively.
On the import side, final consumption, intermediate, and capital goods represented 36.8 percent, 54.3 percent, and 8.9 percent, respectively compared to 41.8 percent, 49.7 percent, and 8.5 percent last year.
The year-on-year export price index decreased by 1.3 percent, while the import price index rose by 0.2 percent, resulting in a 1.5 percent decline in the terms of trade index during the review period, the NRB report stated.
(RSS)
