Nepal’s trade deficit widened to Rs 1.78 trillion in fiscal year 2025/26 as imports reached Rs 2.096 trillion against exports of Rs 315.29 billion. The country recorded trade deficits with 134 of its 162 trading partners, with imports heavily concentrated on neighboring India and China. Petroleum products and edible oil remained the largest import items, while remittance inflows of Rs 2.12 trillion helped finance the deficit and contributed to foreign exchange reserves rising to Rs 3.76 trillion.
