Nepal’s export sector has shown impressive growth during the first eight months of the 2024/25 fiscal year. By mid-March, goods worth Rs. 158.17 billion were exported. This is a big jump of 57.20% compared to the same period last year. The rise in exports highlights the growth in Nepal’s foreign trade and its growing role in global markets.
Strong Export Growth
Nepal’s export performance has been strong in the 2024/25 fiscal year. In the first eight months, exports reached Rs. 158.17 billion. This is a major increase from Rs. 100.61 billion in the same months last year. The growth in exports has been driven by several key products, including oils, carpets, tea, and cardamom.
The export of soybean oil has been especially important. In the first eight months, soybean oil worth Rs. 47.94 billion was exported. This is a huge rise from just Rs. 754 million last year. In one month, from February 13 to March 13, 2025, soybean oil worth Rs. 15.53 billion was shipped abroad. This represents 30% of Nepal’s total exports during this period.
Sunflower oil exports also increased. In the first eight months, Rs. 7.9 billion worth of sunflower oil was exported. This is a big rise from Rs. 148 million in the same period last year.
Impressive Month for Exports
February was an excellent month for Nepal’s exports. Goods worth almost Rs. 30 billion were shipped during the month of Falgun (from February 13 to March 13, 2025). This is a record for the country. The strong export numbers reflect Nepal’s expanding presence in global markets.
Other goods also saw good export numbers. Carpet exports reached Rs. 8.13 billion, tea and coffee exports totaled Rs. 3.5 billion, and cardamom exports were worth Rs. 5.84 billion.
Imports Rise, Too
While exports are growing, imports are rising as well. During the first eight months of the 2024/25 fiscal year, Nepal imported goods worth Rs. 1,145.56 billion. This is up from Rs. 1,030.22 billion during the same period last year. The rise in imports shows that Nepal’s economy is growing and that the country needs more goods from abroad.
The increase in imports has caused a rise in the trade deficit. The trade deficit is the gap between the value of exports and imports. In the first eight months of the current fiscal year, the trade deficit increased by 6.22% to Rs. 987.39 billion. Last year, the trade deficit was Rs. 929.60 billion.
Rising Demand for Petroleum Products
One major reason for the rising imports is the demand for petroleum products. Nepal imported petroleum products worth Rs. 176 billion in the first eight months of the current fiscal year. Petroleum products are essential for transportation and energy needs, but Nepal has limited domestic production. This means the country has to rely on imports to meet its needs.
Total Trade Volume Grows
Nepal’s total foreign trade volume reached Rs. 1,303.7 billion during the first eight months of the 2024/25 fiscal year. This is a rise of 15.29% compared to the same period last year. While exports have grown, the increase in imports has led to a larger trade deficit.
Diversifying Exports
Nepal has been working to diversify its exports. The country has traditionally relied on products like carpets and agricultural goods. However, new products, such as oils, are now becoming more important. The export of soybean and sunflower oils has helped increase Nepal’s export earnings.
In addition to oils, carpets, tea, coffee, and cardamom continue to be important export items. These products have strong demand in global markets. The government has been supporting exporters to increase production and find new markets for Nepali goods.
Challenges Ahead
While the growth in exports is encouraging, Nepal still faces challenges. The trade deficit continues to rise. This means the country is spending more on imports than it is earning from exports. To address this, Nepal needs to find ways to boost exports even further. This may include focusing on high-demand products and finding new markets.
Reducing the reliance on imports is also important. The country must work to produce more goods domestically, especially in areas like energy and raw materials. This will help reduce the trade deficit and improve the balance of payments.
The future looks positive for Nepal’s export sector. The rise in exports, especially in oils like soybean and sunflower, shows that Nepal can compete in international markets. If the country continues to focus on expanding its export base, it can expect further growth in the coming years.
The government will need to continue supporting exporters. Encouraging more investment in manufacturing and agriculture will also help boost exports. With continued effort, Nepal’s foreign trade can keep growing, and the country can work toward reducing its trade deficit.
