10th Export Day 2026: Addressing Challenges in Nepal’s Export Infrastructure

3rd January 2026, Kathmandu

While Nepal’s export statistics show a numerical rise, the Export Council of Nepal (ECON) has concluded that the sector remains fundamentally import-oriented.

10th Export Day 2026

At a press conference held on Friday, the Council expressed concern that the majority of export growth is limited to specific commodities and restricted markets, failing to strengthen the domestic economy.

The Illusion of Export Growth

According to Naresh Lal Shrestha, President of the Export Council of Nepal, a significant portion of the country’s exports consists of items like soybean and sunflower oil. Since these products are largely processed from imported raw materials and re-exported, they do not utilize domestic raw materials or create substantial employment opportunities within the country.

“The growth we see is superficial,” President Shrestha stated. “Because our exports are heavily concentrated on a few items and primarily focused on the Indian market, they haven’t had the expected impact on our industrial production or job creation for Nepalese youth.”

A Grim Picture of Foreign Trade (The Data)

The statistics for the fiscal year 2024/25 (B.S. 2081/82) illustrate the widening gap in Nepal’s trade balance:

Total Foreign Trade: 2081.15 Billion NPR (A 19.2% increase).

Export Contribution: Only 13.3% (277.03 Billion NPR).

Import Share: A staggering 86.7%.

Trade Deficit: 1527.09 Billion NPR, equivalent to nearly 25% of Nepal’s GDP.

The trend has continued into the current fiscal year (2025/26), with the trade deficit reaching 515.96 billion NPR in just the first four months (Shrawan–Kartik).

Major Export Commodities of Nepal

According to the Council, Nepal’s current export portfolio is dominated by:

Processed Soybean and Sunflower Oil

Iron, Steel products, and Yarn

Woolen Carpets, Pashmina Shawls, and Readymade Garments

Jute products, Cardamom, Tea, and Cement

Key Barriers to Export Promotion

Despite the private sector contributing 81.55% to the GDP and 85.6% to national employment, several factors hinder export growth:

Infrastructure Deficit: Lack of modern warehouses and specialized transport.

High Logistics Costs: Making Nepalese products less competitive in the global market.

Lack of Certification Labs: Without international-standard testing labs, Nepalese goods face hurdles in reaching premium Western markets.

Policy Instability: Sudden decisions, such as the withdrawal of export cash incentives, have discouraged exporters.

10th Export Day 2026: The Road Ahead

Under the theme “Promoting Export Trade of Nepal,” the Council is preparing for its 28th Annual General Meeting and the 10th Export Day 2026. The event aims to sensitize policymakers and the public about the economic importance of exports.

Key Demands from the Export Council:

Reinstate Cash Grants: Immediate reversal of the decision to cut export incentives.

Concessional Loans: Prioritizing the export sector for specialized financing.

International Labs: Establishment of recognized testing facilities within Nepal.

Logistics Support: Government intervention to reduce transport and shipping costs.

In conclusion, President Shrestha emphasized that for exports to become the “backbone of the economy,” a strategic partnership between the government and the private sector is no longer an option but a necessity.

For more: 10th Export Day 2026