Kathmandu-Nepal’s trade deficit widened significantly in the fiscal year 2025–26 despite growth in both exports and imports, as imports continued to outpace export earnings.

According to the Department of Customs, the country’s trade deficit increased by 16.63 percent over the previous fiscal year.

Nepal imported goods worth Rs 2.096 trillion during FY 2025–26, up 16.20 percent from Rs 1.804 trillion recorded in FY 2024–25.

Exports also registered growth, rising 13.81 percent to Rs 315.30 billion, compared to Rs 277.03 billion in the previous fiscal year.

However, as imports grew at a faster pace than exports, the country’s trade deficit climbed to Rs 1.782 trillion, up from Rs 1.528 trillion a year earlier.

The total foreign trade volume reached Rs 2.412 trillion in FY 2025–26, marking a 15.88 percent increase from Rs 2.081 trillion in the previous fiscal year.

Customs data also show that the import-to-export ratio increased from 6.51 times to 6.65 times. The share of exports in total foreign trade declined slightly from 13.31 percent to 13.07 percent, while the share of imports rose from 86.69 percent to 86.93 percent, underscoring Nepal’s continued dependence on imported goods.