Merchandise exports surged by an impressive 77.8 percent over the first eleven months of the fiscal year 2024-25, reaching Rs. 247.57bn, the latest macroeconomic situation update from the Nepal Rastra Bank (NRB) shows. The growth marks a sharp rebound from the three percent decline recorded during the same period last year.
While exports to India, Nepal’s largest trading partner, went up by a whopping 112.6 percent, exports to China and other countries saw modest increases of three and 4.4 percent, respectively. The export of soybean oil, polyester yarn and thread, jute goods, tea and rosin increased during the period. However, exports of palm oil, zinc sheets, juice, readymade garments and cardamom declined.
Meanwhile, merchandise imports went up by 13.1 percent to Rs. 1,644.80bn in the review period, compared to a 1.8 percent decline in the same period last year. Imports from India, China and other countries rose by 7.6 percent, 15.3 percent and 29.5 percent, respectively. Items like crude soybean oil, rice and paddy, vehicles and spare parts, edible oil and sponge iron contributed to import growth. However, imports of petroleum products, gold, electrical equipment, fertilizers and coal suffered.
Although exports have posted a remarkable growth, the low export volume meant Nepal’s deficit widened by 6.3 percent to Rs 1,397.23bn over the 11-month period. However, the export-import ratio improved to 15.1 percent, up from 9.6 percent, indicating relatively better export performance.
In the service sector, the net service income remained negative at Rs 97.33bn, with travel payments, including Rs 124.8bn for education alone, outpacing travel income. Remittances, however, increased by 15.5 percent to Rs 1,532.93bn over the first 11 months of 2024/25. In US dollar terms, remittances rose 12.7 percent to $11.25bn. The remittance growth was supported by a strong labor migration sector. A total of 452,000 Nepali workers received new approvals for foreign employment, while over 308,000 renewed their approvals.
The healthy growth in remittances helped the country post a current account surplus of Rs 307.31bn, up from a surplus of Rs 200.38bn in the same period of the previous fiscal year. The balance of payments (BoP) also recorded a surplus of Rs 491.44bn, up from Rs 425.67bn a year earlier. Foreign direct investment (equity only) climbed 34.7 percent to Rs 11.09bn, while net capital transfers amounted to Rs 8.96bn, according to the report.
Foreign exchange reserves also rose by 25.9 percent to Rs 2,569.38bn in mid-June 2025, up from
Rs 2,041.10bn in mid-June 2024. In US dollar terms, the reserves rose by 22.2 percent to $18.65bn from $15.27bn over the same period. Of the total reserves, those held by the central bank climbed 23 percent to Rs 2,274.47bn, while reserves held by banks and financial institutions soared by 53.2 percent to Rs 294.92bn.
The share of Indian currency in total reserves stood at 20.5 percent in mid-June 2025. The foreign exchange level is sufficient to cover 17.6 months of prospective merchandise imports and 14.7 months of merchandise and services imports, according to the report.
