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By Sandeep Chaudhary

Nepal’s Export Boom: Soybean Oil Leads with 43% Share, Total Exports Up 140%

Published on October 26, 2025

Nepal’s export sector has witnessed a remarkable revival at the start of FY 2025/26, with total exports surging by around 140% year-on-year, according to the Nepal Rastra Bank (NRB) Mid-September 2025/26 report. The export boom has been overwhelmingly led by soybean oil, which now commands a 43.2% share of Nepal’s total exports, cementing its position as the country’s largest export product for the second consecutive year.

Soybean Oil Drives the Export Surge

In the first two months of the fiscal year, soybean oil exports reached Rs. 20.42 billion, up dramatically from Rs. 143.8 million in the same period of FY 2024/25. This exceptional growth underscores Nepal’s growing role as a refined edible oil re-export hub, primarily catering to the Indian market. The dominance of soybean oil highlights Nepal’s industrial dependence on import-based refining, supported by low tariff structures and favorable bilateral trade arrangements.

Palm Oil, Jute Goods, and Cardamom Among Top Gainers

Alongside soybean oil, several commodities showed strong double- and triple-digit growth:

Palm Oil exports soared 318.4% to Rs. 1.36 billion, driven by a rebound in re-export activity.
Jute Goods jumped 61.1% to Rs. 1.61 billion, reflecting rising demand for eco-friendly packaging materials.
Cardamom rose 43.9% to Rs. 859.6 million, benefiting from stable Indian demand and higher global spice prices.
Noodles (+45.7%), Herbs (+44.0%), and Shoes & Sandals (+35.2%) also registered notable gains.

Overall, the top 20 commodities accounted for Rs. 35.68 billion, making up 75.4% of total exports, and showing a 122% rise from the same period last year.

Traditional Exports Decline

While the overall trade picture is positive, some traditional export sectors faced setbacks:

Woolen Carpet exports dropped 20.7% to Rs. 1.58 billion.
Tea declined 37.2% to Rs. 794.5 million.
Zinc Sheets fell sharply by 77.6%, while Particle Board decreased 70.4%.
These declines indicate persistent challenges in Nepal’s traditional handicraft and manufacturing exports, especially in price-sensitive international markets.

Macro Stability Strengthens Export Outlook

The export surge comes amid an improving macroeconomic environment. NRB data shows:

Foreign exchange reserves climbed to Rs. 2.88 trillion (USD 20.41 billion).
Remittance inflows rose 33% to Rs. 352 billion.
Inflation dropped to 1.87%, providing price stability.
Balance of Payments (BOP) recorded a surplus of Rs. 153.7 billion, while the current account remained positive at Rs. 130.7 billion.

These figures reflect growing confidence in Nepal’s external sector and a favorable trade environment bolstered by global oil and agricultural market trends.

Diversification Remains Key

Economists, however, warn that Nepal’s export boom is heavily concentrated in a few re-export commodities such as soybean and palm oil. Long-term sustainability will depend on diversifying export products, enhancing manufacturing competitiveness, and expanding regional trade beyond India.

Securities Board of Nepal Fails to Implement Capital Market Reform Roadmap Despite Set Deadlines

Securities Board of Nepal Fails to Implement Capital Market Reform Roadmap Despite Set Deadlines The Securities Board of Nepal (SEBON) has once again come under fire for its failure to implement the reform recommendations proposed by the Capital Market Reform Task Force. Despite preparing a detailed action plan with specific deadlines, SEBON has reportedly delayed or ignored most of the assigned tasks — frustrating investors and raising questions about its regulatory credibility.

Nepal Rastra Bank’s Foreign Investments Cross NPR 1.8 Trillion Mark

Nepal Rastra Bank’s Foreign Investments Cross NPR 1.8 Trillion Mark Nepal Rastra Bank (NRB), the country’s central bank, has seen its foreign investment holdings exceed NPR 1.8 trillion, marking a record high. According to the latest data from NRB, as of Ashwin (mid-October 2025), the bank’s investments in foreign securities reached NPR 1.811 trillion, up sharply from NPR 1.506 trillion at the end of Asar (mid-July 2025). This represents an increase of over NPR 300 billion in just three months.

Nepal’s Public Debt Rises by Rs 50.6 Billion in First Quarter, External Liabilities Dominate

Nepal’s Public Debt Rises by Rs 50.6 Billion in First Quarter, External Liabilities Dominate Nepal’s public debt has increased by Rs 50.6 billion in just the first three months of the ongoing fiscal year 2082/83. According to the Public Debt Management Office, total outstanding public debt stood at Rs 27.24 trillion by the end of Ashoj, up from Rs 26.74 trillion at the beginning of the fiscal year in Shrawan. The rise in debt indicates the government’s growing dependence on borrowing to meet its fiscal needs amid weak revenue performance. The report shows that Nepal’s total public debt now amounts to 44.61 percent of the country’s Gross Domestic Product (GDP). Out of this, 20.93 percent of GDP is domestic debt, while 23.69 percent represents external borrowing. Economists have warned that while the figure is still below the critical 50 percent debt-to-GDP threshold, the trend points to a gradual build-up of fiscal stress, especially given Nepal’s sluggish growth and limited revenue mobilization capacity.

NEA Cuts Power to 25 Industries; 20 Shut Down, 16,000 Workers Affected

NEA Cuts Power to 25 Industries; 20 Shut Down, 16,000 Workers Affected The Nepal Electricity Authority (NEA) has disconnected the power supply to 25 industries across the country that were operating through dedicated feeders and trunk lines, citing long-pending arrears of Rs 5.48 billion. Among them, 20 industries have been forced to halt operations completely, while five others remain partially functional. Two of those had already suspended production earlier, two have reconnected after starting installment payments, and Shivam Cement has managed to continue production by running its generators.

Government Unveils Comprehensive Reform Roadmap for Public Enterprises: Focus on Efficiency, Governance, and Financial Discipline

Government Unveils Comprehensive Reform Roadmap for Public Enterprises: Focus on Efficiency, Governance, and Financial Discipline The Government of Nepal has officially unveiled a broad reform framework aimed at enhancing the performance, governance, and financial discipline of the country’s public enterprises. The Ministry of Finance has released the “Public Enterprises Management and Governance Policy, 2082”, identifying critical challenges and outlining institutional reforms to improve efficiency, professionalism, and accountability.

Nepal Sees NPR 35 Billion in FDI Commitments in First Quarter, But Actual Investment Still Trails Behind

Nepal Sees NPR 35 Billion in FDI Commitments in First Quarter, But Actual Investment Still Trails Behind In the first three months of the current fiscal year 2082/83, Nepal has received foreign direct investment (FDI) commitments amounting to NPR 35.13 billion, according to data released by the Department of Industry (DoI). Between mid-July and mid-October, a total of 311 projects were approved with foreign investment pledges, signaling a steady interest from international investors despite ongoing economic challenges. The month of Ashoj alone witnessed commitments of NPR 4.94 billion through 54 new projects. Among the total commitments, seven large-scale, four medium, and 300 small-scale enterprises were approved for investment. Officials from the DoI noted that Nepal continues to attract the highest number of small-scale ventures, showing the growing interest of small foreign entrepreneurs rather than large multinational companies. The tourism sector has emerged as the top recipient of FDI pledges this quarter. A total of 103 tourism-related projects received commitments worth NPR 1.46 billion, reflecting investors’ optimism in the post-pandemic revival of Nepal’s tourism industry. Many of these projects are focused on hotels, adventure tourism, eco-lodges, and hospitality-related services.

Nepal’s Banks Struggle with Loan Recovery Amid Festive Delays and Liquidity Pressures

Nepal’s Banks Struggle with Loan Recovery Amid Festive Delays and Liquidity Pressures Nepal’s banking and financial institutions (BFIs) are facing a critical period as they prepare to publish their first-quarter financial reports for FY 2082/83 (up to mid-October). The Nepal Rastra Bank (NRB) has extended the reporting deadline to Kartik 21, citing the impact of the festive season and operational challenges. Previously, banks were required to publish within seven days of the quarter’s end. This extension provides some relief, especially as the central bank has also allowed income from collections made up to Kartik 15 to be counted in the first quarter’s earnings. However, despite these measures, banks are under mounting pressure due to sluggish loan recovery, weak credit demand, and excess liquidity.

Other Liabilities of Banks Rise 11.5% to Rs 1.84 Trillion as Reserves and Debentures Expand Sharply

Nepal’s banking sector recorded an 11.5% rise in other liabilities, totaling Rs 1.84 trillion, driven by surging reserves and increased debenture issuance. The expansion reflects enhanced capital strength, stable funding diversification, and robust financial resilience across the banking industry.