Nepal recorded a trade deficit of Rs 861.38 billion in the first seven months of the current fiscal year, with total foreign trade amounting to Rs 1,115.79 billion.

According to data released by the Department of Customs, covering trade activities until mid-February, Nepal's imports totaled Rs 988.58 billion, while exports stood at Rs 127.20 billion.

The department reported a 46.50 percent increase in exports compared to the same period last year, while imports rose by 10.09 percent. As a result, total foreign trade grew by 13.30 percent. However, the trade deficit widened by 6.20 percent year-on-year.

Imports accounted for 88.60 percent of total foreign trade, while exports contributed 11.40 percent.

During the review period, Nepal’s trade deficit with its largest trade partner, India, reached Rs 498.34 billion. Nepal imported goods worth Rs 596.35 billion from India, while exports to the southern neighbor totaled Rs 98.75 billion.

Similarly, Nepal also incurred a trade deficit of Rs 190.44 billion with China. Imports from China amounted to Rs 192.45 billion, whereas exports stood at only Rs 2 billion.

Nepal faced trade deficits with several other countries, including Argentina, the UAE, and Australia. However, the country maintained a trade surplus with 35 nations. Afghanistan was one of the few countries where Nepal recorded a trade surplus, with imports at Rs 12.4 million and exports reaching Rs 494.5 million. Other countries with which Nepal recorded trade surplus included Denmark, Russia, Austria, Norway, and the Maldives.

The department highlighted that a significant portion of Nepal’s import expenditure was on petroleum products, while soybean oil remained the country’s top export commodity. -- RSS