KATHMANDU: In the first six months of the current fiscal year, Nepal’s export earnings were insufficient even to cover the country’s fuel imports. According to six-month foreign trade statistics published by the Department of Customs on January 21, Nepal earned Rs 142.01 billion from merchandise exports between mid-July 2025 and mid-January 2026. However, during the same period, Rs 142.75 billion was spent on importing diesel, petrol, and cooking gas (LPG).

Had fuel imports been financed solely through export earnings, the country would still have fallen short by Rs 740 million. Among all imported items during the six-month period, diesel topped the list.  Nepal imported diesel worth Rs 58.27 billion, followed by petrol worth Rs 33 billion and LPG worth Rs 27 billion.

The near parity between export earnings and fuel import costs has been possible only due to a recent improvement in export performance. In previous years, Nepal’s total export income was far from sufficient to cover fuel imports. Customs data show that in the same six-month period of the previous year, Nepal exported goods worth only Rs 98.78 billion

Soybean oil second largest import

The second most imported commodity during the period was crude soybean oil, with imports totaling Rs 57.43 billion. Nepal imports soybean oil primarily for processing and subsequent export to India. Since it is brought in specifically for re-export, soybean oil imports remain high.

Foreign trade improves

During the first six months of the current fiscal year 2025/26, Nepal’s total foreign trade amounted to s 1,181.04 billion. Imports increased by 14.18 percent, while exports surged by 43.76 percent. Overall foreign trade grew by 17.36 percent, according to official data.

In the previous fiscal year 2024/25 total foreign trade during the same period was limited to Rs 921 billion. The expansion in foreign trade in the current fiscal year indicates increasing economic activity. Notably, while imports grew by 14.18 percent, exports recorded a much stronger growth of *43.76 percent over the six-month period.

By the end of mid-January 2026, Nepal had imported goods worth Rs 939 billion. In the same period last year, imports stood at Rs 822 billion, while exports amounted to Rs 142 billion. The latest customs data show that for every rupee Nepal earned through exports, it imported goods worth Rs 6.6.

As exports to various countries increased, the share of exports in total foreign trade rose by 22.50 percent. The growth in exports has helped reduce the country’s foreign trade deficit. As of mid-January, the total trade deficit stood at Rs 797 billion, compared to Rs 723 billion in the same six-month period of the previous fiscal year.

Major import categories

Nepal imported vegetable and animal oils and ghee worth Rs 76.33 billion during the period. Imports of iron and steel stood at approximately Rs 66.13 billion.

Imports of fuel, iron, and steel are also used in capital formation, indicating that the economy is becoming more dynamic. Imports of electrical equipment and parts amounted to Rs 64.92 billion, while machinery and mechanical equipment imports totaled Rs 63.89 billion. Vehicle imports cost Rs 55.31 billion, while fertilizer imports reached Rs 16.25 billion. Imports of food grains amounted to Rs 28.76 billion.

Mobile phones worth Rs 23 billion

During the first six months of the current fiscal year, Nepal imported mobile phones worth Rs 23.298 billion. According to customs data, 1.252 million mobile handsets were imported during this period.

In the same six months, Nepal imported gold worth Rs 18.8326 billion. Despite a sharp rise in gold prices, gold imports have not declined.

From imports during the six-month period, the government collected Rs 238.5354 billion in revenue. Of this, Birgunj Customs accounted for the largest share, collecting 46.66 percent of the total revenue, followed by Bhairahawa and Biratnagar customs offices.

Increased imports via Korala border point

In the past six months, imports from China have been higher through Mustang’s Korala border point than through Rasuwagadhi. Rasuwagadhi Customs remained closed for six months due to damage caused by floods in July.

Imports through Tatopani were also disrupted due to road-related issues, resulting in increased imports through Korala. Over the past six months, goods worth Rs 11.68 billion were imported via the Korala border point, while imports through Rasuwagadhi Customs amounted to only Rs 2.0357 billion.