KATHMANDU: Nepal enjoyed a trade surplus with only 28 of the more than 140 countries with which it trades, underscoring the country’s growing reliance on imports and its weak export base.

The largest trade surplus was recorded with Denmark, amounting to Rs 274.41 million. Nepal exported goods worth Rs 324.41 million to Denmark—primarily tea, pasta, snacks, pet food, felt products and pullovers—while importing machinery, ophthalmic instruments, pharmaceuticals and animal feed worth Rs 49.99 million.

Nepal also posted surpluses with Romania, Sweden, Niger, Iraq and Seychelles. However, these gains were overshadowed by steep deficits with major partners.

In fiscal year 2024/25, Nepal had recorded trade surpluses with 34 countries out of more than 160 trading partners. The largest surplus was with Afghanistan at Rs 686.11 million, followed by Denmark (Rs 338.91 million), Russia (Rs 77.42 million), Romania (Rs 65.42 million), and Austria (Rs 57.66 million).

Foreign trade data for the first four months of the current fiscal year 2025/26 show that the trade deficit is rising sharply as the volume of trade expands.

According to the Department of Customs, Nepal’s trade deficit reached Rs 515.95 billion in the four months, an 11.99% increase from Rs 460.71 billion in the same period last year.

The biggest deficit was with India, the largest trading partner. Nepal imported goods worth Rs 337.92 billion from India but exported products worth only Rs 76.5 billion, resulting in a deficit of Rs 261.41 billion. The deficit with China stood at Rs 132.27 billion, while trade with Argentina and the UAE resulted in deficits of Rs 34.72 billion and Rs 21.56 billion, respectively.