Foreign commerce has not improved; in just two months, there has been a 2 trillion 37 billion trade loss.

Despite the improvement in the external indicators of the economy, there is no sign of improvement in the country's foreign trade. In the first two months of the current fiscal year 2081/82, the export trade of the country has decreased, while the import has not increased significantly.

According to the Customs Department, export trade has declined by 5.12 percent till August of the current financial year, while imports have improved by only 1.08 percent. In two months, the country's trade deficit has reached two trillion 37 billion 44 million rupees. 

Only 25.9 billion rupees worth of commodities were exported in July and August of the current fiscal year, compared to two billion 62.54 billion rupees worth of imports. One trillion 28 billion rupees were imported in July, and one trillion 34 billion rupees in August. Despite the fact that August is when commodities are imported for Tihar and Dasain, the import has only increased by 1.08 percent. Domestic consumption does not imply a decline in local production.

Exports of commodities are declining as opposed to steadily rising. The customs bureau reports that exports have dropped to 25 billion ninety million rupees. Up till August of Pohor, goods valued at 26 billion 44 million rupees were shipped.

Although there is a general improvement in the overall foreign trade of the country, it is not encouraging. As of August of the current year, the total foreign trade is two billion 87 billion 63 million rupees. In the same period last year, the total foreign trade was two billion 86 billion 19 billion rupees.

The import of petroleum products, which are mostly imported in Nepal, has decreased. According to the customs department, diesel, petrol, kerosene, gas, aviation fuel worth 43 billion 25 million rupees were imported in two months. Last year, during the same period, petroleum products worth 44.65 billion were imported. Nepal has the largest trade deficit with India. Goods worth one trillion 60 billion rupees have been imported from India, while only 15.98 billion rupees have been exported.

During the 2080–2081 fiscal year, Nepal experienced a trade deficit of 14 trillion 40 billion. There was a decline in import and export commerce last year as well. While imports decreased by 1.16 percent, exports decreased by 3.03 percent.

The trade imbalance has not decreased, despite the government's repeated claims that it will do so by raising the production of items that are consumed domestically. Nepal's trade deficit with over 150 countries has been ongoing.

China and India, two nearby nations which share borders, have the biggest trade deficit. A significant portion of the remittances from overseas were sent overseas as the trade deficit in the nation increased.

In Nepal, fuel is the most frequently imported good. Imported goods include ready-made clothes, food grains, vegetables, mobile phones, cooking gas, diesel, and gasoline.

The nation's export industry lacks zeal, despite the government's policy of providing subsidies to lower the trade imbalance and promote exports. Industry insiders claim that the global economic issues resulting from the Russia-Ukraine war have not led to an increase in demand for items from overseas.

Nepal exports a wide range of goods, including tea, fruit juice, carpets, cardamom, oil, and jute cloth. The government has implemented a strategy of providing up to 8% subsidies on the export of roughly thirty goods, including cement, in order to promote exports. Last year, the cement sector began exporting after offering incentives to promote exports.

Products with significant export potential, such as treated water, steel, clinker, and shoes, are anticipated to be exported. A process has been established by the government to subsidize the export of roughly thirty different commodities and put them to use.

The guidelines for offering export subsidies have already been released by the Ministry of Industry, Commerce, and Supplies. A "Made in Nepal and Made in Nepal" campaign in association with the private sector has been declared in order to encourage the mass manufacturing, marketing, utilization, and export of native products. By being self-sufficient in goods like cement, medication, iron rods, furniture, shoes, and other items, it intends to increase exports.