Kathmandu [Nepal], August 7 – Nepal recorded trade deficits with 128 of its 162 trading partners during the fiscal year 2025-26, as rising imports continued to outpace record export earnings according to the latest data released by the Department of Customs.
The country’s overall trade deficit widened to Rs 1.78 trillion with imports increasing 16.2 percent year-on-year to Rs 2.10 trillion while exports rose 13.81 percent to a record Rs 315.29 billion. Nepal posted trade surpluses with only 34 countries but those gains were insufficient to offset the widening imbalance.
India remained Nepal’s largest trading partner and the biggest contributor to the deficit. Nepal imported goods worth Rs 1.21 trillion from India while exporting Rs 258.65 billion, resulting in a trade deficit of Rs 951.95 billion. India accounted for about 60 percent of Nepal’s total foreign trade receiving more than 82 percent of the country’s exports and supplying nearly 58 percent of its imports.
China ranked second with Nepal recording a trade deficit of Rs 423.35 billion after importing Rs 425.24 billion worth of goods and exporting only Rs 1.89 billion.
Among other major deficit partners were Argentina, the United Arab Emirates, Indonesia, Thailand, Australia, Brazil, Malaysia, the United States, Saudi Arabia and Japan.
Despite the overall imbalance, Denmark emerged as Nepal’s largest surplus trading partner with a surplus of Rs 804 million followed by Norway.
The latest figures underscore Nepal’s continued reliance on imports despite record export earnings highlighting the need to strengthen export-oriented industries diversify overseas markets and reduce the country’s growing trade imbalance.
