Kathmandu: During the two months of Fiscal Year 2025/26, merchandise exports saw a significant rise of 88.6 percent, reaching Rs 47.32 billion. This contrasts sharply with a 5.1 percent decline during the same period in the previous year.
According to National News Agency Nepal, this information is part of the Current Macroeconomic and Financial Situation of Nepal report published by Nepal Rastra Bank (NRB). The report, which covers data up to mid-September of Fiscal Year 2025/26, highlights a remarkable increase in exports to India by 139.9 percent, while exports to other countries grew by 0.4 percent. However, exports to China experienced a substantial decrease of 58.5 percent.
The report indicates that exports of products such as soybean oil, palm oil, jute goods, cardamom, and noodles increased during this period, whereas exports of zinc sheets, particle boards, tea, woolen carpets, and oil cakes decreased. Concurrently, merchandise imports rose by 16.2 percent to Rs.305.16 billion, compared to a 1.1 percent increase in the same period last year. Imports from India, China, and other countries rose by 8.0 percent, 25.1 percent, and 33.4 percent respectively.
The total trade deficit grew by 8.6 percent to Rs.257.84 billion during these two months, compared to a 1.8 percent increase in the previous year. The export-import ratio improved to 15.5 percent from 9.6 percent in the same period last year. Imports from India, paid in convertible foreign currency, amounted to Rs. 27.75 billion, down from Rs. 29.93 billion in the previous year.
In terms of Broad Economic Categories (BEC), final consumption, intermediate, and capital goods constituted 69.3 percent, 29.9 percent, and 0.8 percent of total exports respectively. In the previous year, these ratios were 45.6 percent, 53.2 percent, and 1.2 percent.
For imports, final consumption, intermediate, and capital goods accounted for 36.8 percent, 54.3 percent, and 8.9 percent respectively, compared to 41.8 percent, 49.7 percent, and 8.5 percent last year. The year-on-year unit value export price index decreased by 1.3 percent, while the import price index increased by 0.2 percent, resulting in a 1.5 percent decline in the terms of trade (ToT) index.