KATHMANDU: Nepal has incurred a trade deficit of nearly Rs 400 billion in the first three months of the current fiscal year 2025/26, while gold imports surged sharply, reflecting growing investor interest amid rising prices and limited supply.

According to the Customs Department, the country’s imports totaled Rs 468 billion, while exports reached Rs 72.8 billion, resulting in a total foreign trade of Rs 540.9 billion and a trade gap of Rs 395.3 billion.

Trade with India accounted for a deficit of Rs 199.7 billion, while China trade showed a gap of Rs 104.70 billion.
Nepal recorded the highest trade surplus with Denmark, at Rs 240.98 million, followed by gains with Germany, Romania, Sweden, and Lebanon.

In the same period, gold imports jumped to 606 kilograms, including 601 kg of raw gold and 5 kg of jewelry, compared to just 113.5 kg last year.

Rising gold prices and improved foreign currency reserves have drawn investors to gold. The government increased the daily import quota from 20 kg to 25 kg to meet demand.

The value of imported raw gold was Rs 10.25 billion, generating Rs 1.02 billion in revenue, while gold jewelry imports amounted to Rs 71.5 million, contributing Rs 3.4 million in tax revenue.