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4 clusters · 15 sources · 28 days · First seen · Last updated

Nepal trade dynamics and widening deficit FY 2025/26

Overview

In the 2025/26 fiscal year, Nepal’s trade with India and other partners presented a complex landscape of rising volumes and widening deficits. Total merchandise exports rose 13.8% to NPR 315.29 billion, heavily supported by refined soybean oil. This sector, which generated NPR 128.74 billion, accounted for approximately 40.8% of total export earnings, with the industry relying on crude oil imported from South American suppliers like Argentina.

However, specific sectors faced challenges. Nepali tea shipments through the Kakarvitta border fell from 15,311 to 13,045 metric tons, reducing export earnings by roughly NPR 640 million. Chief Customs Administrator Shivlal Neupane attributed this decline to Indian market price fluctuations, non-tariff quality testing barriers, and shifting global demand.

Simultaneously, Nepal’s import bill grew significantly. Petroleum imports rose 15.5% to NPR 332.27 billion, representing nearly 16% of total imports, with diesel being the largest component. At the start of the current fiscal year (Shrawan), a surge in imports—including electric vehicles from China and India—outpaced export growth, causing the trade deficit to widen by 24.88% to NPR 148.73 billion.

Recent data from the first month of the current fiscal year shows exports rose 61.72% to Rs 38.70 billion, while imports increased 31.04% to Rs 187.43 billion. Electric vehicle (EV) imports have surged; electric car imports rose fourfold to 689 units compared to the previous year, and electric two-wheeler imports reached 5,174 units, accounting for 18.60% of total two-wheeler imports. Traders cite expanding charging infrastructure and rising petroleum prices as drivers for this shift.

This transition coincides with rising energy demand. The Nepal Electricity Authority reported that per capita electricity consumption rose 5.98% to 418.31 units in the last fiscal year. However, the authority faced distribution challenges, with system leakage rising to 10.44%, resulting in an estimated revenue loss of Rs 14 billion.

Entities

Nepal · Department of Customs · India · Plant Quarantine Office · Nepal tea industry

Timeline

  1. 4 days ago

    [BUSINESS] 4 sources
    Nepal sees surge in electric vehicle imports and electricity use

    Nepal sees a fourfold jump in electric car imports and rising per capita electricity consumption, even as the Nepal Electricity Authority struggles with a 10.44 percent distribution leakage rate.

  2. 4 days ago

    [BUSINESS] 4 sources
    Nepal trade deficit widens as imports and exports rise

    Nepal's trade deficit rose to Rs 148.73 billion in Shrawan as both imports and exports grew significantly, alongside substantial agricultural and electric vehicle imports.

  3. 23 days ago

    [BUSINESS] 2 sources
    Nepal tea exports to India fall sharply via Kakarvitta border

    Nepal’s tea exports to India via the Kakarvitta border fell to 13,045 t (Rs 3.53 bn) in FY 2025/26, down from 15,311 t (Rs 4.17 bn) a year earlier, hurting farmers and widening Nepal’s trade deficit.

  4. about 1 month ago

    [BUSINESS] 8 sources
    Nepal's trade surge in FY 2025/26 shows record exports and rising petroleum imports

    Nepal’s FY 2025/26 saw petroleum imports rise 15.5% to Rs 332 bn and exports jump 13.8% to NPR 315 bn, with refined soybean oil making up over 40% of export earnings, mainly to India.

Sources

architectedar.com.au · asianlite.com · businessbhutan.bt · english.onlinekhabar.com · habermetre.com · hkasa.net · ictframe.com · myrepublica.nagariknetwork.com · nepalenergyforum.com · peoplesreview.com.np · runningsite.com · stratnewsglobal.com · tennews.in · theshillongtimes.com · timeskuwait.com

This summary has been updated 2 times: see revision history