Kathmandu, Jan 3 (IANS): Nepal's trade deficit surged by 87.44 per cent during the first five months of the current fiscal year compared to same period the last year as imports increased substantially.

According to Nepal's Department of Customs, the country witnessed trade deficit of $3.22 billion during the first five months of fiscal year 2016-17, Xinhua news agency reported.

Nepal imported goods worth $3.5 billion during the period as imports surged by 78.26 per cent compared to same period last fiscal year.

On the other hand, the Himalayan country exported goods worth $280 million, a rise by 14 per cent year-on-year.

Both exports and imports declined during the same period last fiscal year as the country faced Indian blockade since September 2015 for four-and-a-half months.

Nepal imported largest volume of goods from India and China, the two largest trading partners of the country.

According to DoC, Nepal imported goods worth $2.3 billion from India which is two third of the country's total imports. From China, it imported goods worth $500 million.