Nepal’s trade deficit has widened by about 10 percent in the first half of the current fiscal year, for which the country’s dependence on imported fuel and other goods are major reason. From mid July 2025 to mid January 2026, Nepal imported far more than it exported, while imports increased quite sharply and exports rose just a little. Petroleum products made the large share of imports, followed by soybean oil, iron, gold, and smartphones, among others. Though some exports like processed soybean oil, cardamom, and carpets have brought in some revenue, export commodities were not enough to offset the imports. India was still the biggest trading partner of Nepal, with more than half of the share of total imports and the largest trade deficit.
Excessive Petroleum Imports Push Nepal’s Trade Deficit Up 10.15%
