Nepal, July 24 -- Nepal's trade deficit widened sharply by 16.63 percent in fiscal year (FY) 2025/26, reaching Rs 1.781 trillion, as import expenses surged far ahead of export earnings, according to the annual report of the Department of Customs (DoC).

The deficit stood at Rs 1.527 trillion in FY 2024/25. The import-to-export ratio climbed to 6.65, meaning Nepal imported goods worth Rs 6.65 for every rupee earned from exports. The ratio was 6.51 in the previous year, underscoring the country's deepening trade imbalance.

Foreign trade expanded by 15.88 percent overall, but the growth was heavily skewed toward imports. Nepal imported goods worth Rs 2.096 trillion in FY 2025/26, up 16.20 percent from Rs 1.841 trillion a year earlier. Impo...