Nepal’s foreign trade witnessed a decline in the first quarter of the current fiscal year (FY) 2024/25. Floods, landslides, and the ongoing economic recession significantly affected foreign trade. According to data released by the Department of Customs up to mid-October, goods worth Rs 390 billion were imported in the first three months of this year, marking a 4.17 percent decrease compared to the same period last year.

Similarly, exports have also declined. The department’s data show that exports fell by 6.11 percent in the first three months of the current fiscal year. During this period, only goods and services worth only Rs 38.37 billion were exported from Nepal, compared to Rs 40.87 billion in the corresponding period last year. Last year’s trade deficit for the first three months stood at Rs 366.88 billion, while the trade deficit dropped slightly to Rs 352.37 billion in the corresponding period this year.

In the first quarter, the country imported petroleum products worth Rs 52.84 billion. On the export side, Nepali carpets worth Rs 1.83 billion were exported.

Customs data shows that imports through the northern border at Tatopani amounted to Rs 8.94 billion by mid-September. This figure increased by Rs 3.41 billion the following month to reach Rs 12.35 billion by mid-October. Similarly, imports from Rasuwagadhi, at Rs 11.54 billion in the first two months, grew by Rs 4.57 billion to reach Rs 16.10 billion by mid-October.

Officials from the Department of Customs attribute the lack of enthusiasm in foreign trade to factors, particularly the disruptions caused by floods. Many goods bound for Nepal from China, intended for the festive season, were halted along the way. A senior customs official noted that these disruptions have impacted import data and are likely to affect customs revenue until the end of the fiscal year.  

Customs Officer Surya Prasad Kafle at the Tatopani Customs Office reported that imports from China have been halted since late September due to the damage of roads caused by floods. According to him, the roads connecting Nepal and China have been damaged, leaving many festival-targeted goods stuck although there has been efforts to bring the goods through tuin cable crossings. 

Trade expert Purushottam Ojha also observed a lack of enthusiasm in imports during the festive season. He attributed the decline in demand to the increasing trend of Nepali people moving abroad, which has reduced domestic consumption.