Kathmandu: Nepal has encountered a significant trade deficit of Rs 811 billion 110 million during the initial seven months of the current fiscal year 2080/81 BS, as revealed by the foreign trade data published by the Department of Customs. The country engaged in foreign trade totaling Rs 984 billion 770 million during this period.

The data indicates imports amounting to around Rs 897 billion 944 million, while exports recorded Rs 86 billion 831 million as of mid-February (end of Nepali month Magh). In comparison to the first seven months of the previous fiscal year, imports decreased by 2.31 percent, and exports dropped by 7.07 percent. The Department reports a 1.77 percent decrease in trade deficit as overall trade reduced by 2.75 percent compared to the previous year.

India remains Nepal's largest trading partner, with imports from India totaling Rs 554.75 billion and exports amounting to only Rs 58.72 billion. Consequently, Nepal has faced a trade deficit of Rs 496.36 billion with India alone in the seven months of the current fiscal year. China stands as the second-largest trading country, contributing to a trade deficit of Rs 171.23 billion, with imports worth Rs 173.91 billion and exports of Rs 1.85 billion.

The United Arab Emirates ranks third on the list of countries with a high trade deficit for Nepal. In the seven months of the current fiscal year, imports from the UAE amounted to Rs 15.69 billion, and exports were worth Rs 1.58 billion, resulting in a trade deficit of Rs 14.11 billion.

Nepal holds the highest trade surplus with the United States among countries engaged in foreign trade. Importing goods worth Rs 9.17 billion and exporting Rs 9.54 billion during the reporting period, Nepal enjoys a trade surplus of Rs 364.7 million with the US.

However, Nepal faces trade deficits with countries such as Denmark, Norway, Afghanistan, and the Maldives. Notably, the highest imports during the reporting period included petroleum products, with diesel amounting to Rs 77.41 billion, petrol Rs 38.82 billion, and LP Gas Rs 30.31 billion. Additionally, iron-related materials worth Rs 22.66 billion and smartphones valued at Rs 17.38 billion were imported during the same period.