KATHMANDU, Aug. 22 (Xinhua) -- Nepal's foreign trade recorded significant year-on-year growth in the first month of the current 2026-27 fiscal year amid a surge in both imports and exports, according to the Department of Customs.

This photo taken on Sept. 7, 2024 shows a view of Boudhanath Stupa, a UNESCO heritage site, in Kathmandu, Nepal. (Photo: Xinhua)

A monthly report released on Friday by the department shows that Nepal's international trade rose 35.44 percent year on year to about 226.14 billion Nepali rupees (about 1.47 billion U.S. dollars) during mid-July to mid-August, compared with 166.97 billion rupees during the same period of the previous fiscal year.

Exports surged more than 61 percent to 38.70 billion rupees, while imports increased over 31 percent to 187.44 billion rupees.

Despite the strong growth in exports, Nepal's trade deficit widened 24.88 percent year on year to 148.73 billion rupees during the first month of the fiscal year.