Nepal Imports Rise 1.7% in Q1: Impact of Dashain & Ease on Import

For the first time in over a year, Nepal's imports ticked up in October according to new data from the government. The country has been struggling economically for months, but imports finally saw a bit of growth thanks to preparations for Dashain.

Nepal brought in about $3 billion worth of foreign goods during the first three months of its current fiscal year, which started in mid-July. That's a 1.7% increase versus the same period last fiscal year. The Customs Department said more iron, steel, vehicles, machines, and diesel got imported recently. Fuel remains Nepal's biggest import cost overall.

The uptick comes after Nepal put tighter restrictions on buying certain imported stuff earlier this year. With tourism and remittances from Nepalis working abroad dropping, the country was running low on foreign currency reserves. So officials banned non-essential imports like cars, makeup, and gold jewelry for a while.

Imports had fallen around 16% last fiscal year and the slide continued into this year. But Customs spokesperson Punya Bikram Khadka said imports grew a bit ahead of Dashain. That's the major Hindu holiday celebrated in late September. With import bans lifted and more remittance money coming in, demand went up for imports used during festival time.

Nepal's economy has struggled to grow lately. The World Bank estimates only 1.9% GDP growth last fiscal year. It projects a modest recovery to 3.9% this year, but Nepal still has a ways to go. Lifting import restrictions may help trade activity, but weak economic fundamentals remain an issue.