Nepal’s trade deficit reached NRs. 723.58 billion in the first six months of the current fiscal year, according to the latest data from Nepal Rastra Bank (NRB).

The trade deficit data reflected a 4.4% year-on-year increase compared to the same period last year, when it had decreased by 2.6%.

The export-import ratio improved to 12%, up from 9.8% last year. Exports rose by 31.8% to NRs. 98.79 billion, recovering from a 7.2% drop two years ago.

According to the Department of Customs, Nepal’s total foreign trade volume stood at NRs. 921.16 billion in the first half of this fiscal year. In the first six months of 2024/25, imports increased by 7.1% to NRs. 822.37 billion, while exports climbed by 31.8% to NRs. 98.79 billion. Despite the rise in exports, the trade deficit still increased by 4.4%.

India and China remain Nepal’s largest trading partners. Imports from India reached NRs. 502.8 billion, while exports to India amounted to NRs. 73.71 billion, resulting in a trade deficit of NRs. 429.14 billion. Meanwhile, Nepal’s trade deficit with China stood at NRs. 158.62 billion.