Govt announces waivers on customs duty, loan interest and taxes for flood-hit businesses

 Cabinet approves business recovery package

 

Kathmandu, Sept. 3

The government has announced a business recovery package, for the businesses and industries affected by the Bhotekoshi flood, with a full custom duty waiver for the import replacements of the plants or equipment that were destroyed beyond repair.

Such waiver will be applied for the machines and equipment of the same type and up to the quantity destroyed.

As per the full text of the package endorsed by the Cabinet on Thursday, owners of commercial vehicles and means of transport damaged beyond repair or lost in the floods will be allowed to cancel their registration and re-import similar vehicles without paying customs duties.

Similarly, importers whose goods were destroyed by the August 26 floods before reaching their destination will be allowed to adjust the customs duties they had already paid. The facility will apply if replacement goods of the same type are imported through any customs office within six months, read the text shared by the Ministry of Finance (MoF). The Department of Customs will make arrangements to implement these provisions.

Likewise, the government has announced measures to speed up insurance claim assessments and settlements for businesses and individuals affected by the floods.

Under the package, the National Insurance Authority (NIA) is directed to make arrangements to deploy surveyors through a simplified procedure to expedite the assessment of flood-related insurance claims.

"Insured individuals and businesses will also be eligible for advance payments of up to 50 per cent of their claims based on preliminary assessment reports. Reinsurers will similarly be required to provide insurers with advance payments of up to 50 per cent," according to the package.

Likewise, insurers have also been directed to promptly introduce a simplified procedure for settling flood-related insurance claims to make the process faster and more efficient.

 

Loan and interest relief

The government has announced a series of loan and interest relief measures for borrowers affected by the Bhotekoshi floods, aimed at supporting business recovery and ensuring continuity of economic activities. These measures will be arranged and implemented by the Nepal Rastra Bank (NRB).

As per the package, Banks and Financial Institutions (BFIs) can restructure or reschedule the loan or extend the repayment period for principal and interest for the borrowers whose goods being imported through the Rasuwagadhi Customs had been damaged.

However, this facility will be provided on the basis of the nature of the business and goods, the extent of damage and insurance claims, among other factors.

Similarly, flood-affected borrowers will also be eligible for a one-off restructuring or rescheduling of loans taken from the BFIs, along with an extension of the repayment period for principal and interest.

"Banks will also provide loans to businesses seeking to replace commercial vehicles, transport equipment, machinery or other equipment damaged by the floods. Such loans will be available at the bank's base rate plus the prescribed minimum premium," said the government while also pledging to review the applicable loan-to-value ratio of such lending.

For one year, flood-affected borrowers will be charged the lower of either the bank's base rate plus a 0.5 percentage-point premium or the rate resulting from adding the existing premium to the bank's base rate.

The central bank will also allow banks to provide additional loans, at borrowers' request, to support the recovery of industries and businesses or protect employment. Such loans may be paid directly into the account of the relevant third party.

 

Tax waivers for businesses

Meanwhile, the government also announced a range of tax relief measures for taxpayers affected by the Bhotekoshi floods, including an extension of tax filing and payment deadlines and simplified procedures for claiming VAT on damaged business assets.

The Inland Revenue Department (IRD) is directed to extend the deadline for the submission of VAT, income tax, and excise duty for flood-affected businesses and individuals until November 11.

It will also simplify the procedure for adjusting VAT claims on business assets damaged by the floods.

Likewise, businesses will be allowed to deduct the value of assets completely destroyed by the floods as a lump-sum expense for tax purposes while for partially damaged depreciable assets, the limit on deductions for repair and improvement costs will not apply when calculating taxable income for FY 2025/26.

Individuals directly affected by the floods will get full exemption from income tax for this year. The government said that it will further request provincial and local governments to provide concessions for a specified period on property tax, business tax, building plan approval fees and other local charges related to flood-damaged businesses and property.

In addition, contributions made by business institutions to the Prime Minister’s Disaster Relief Fund (PMDRF) in fiscal year 2026/27 from the funds set aside for Corporate Social Responsibility (CSR) will be recognised as CSR expenditure.

The relevant authorities have been directed to amend the applicable laws, regulations and guidelines to facilitate this arrangement.

Published in The Rising Nepal on 4 September 2026.   

Japanese investors eye hospitality sector

Kathmandu, Sept. 5

Japanese businesspeople have expressed interest in making investment in Nepal's hospitality and tourism sector. In a discussion with Nepali entrepreneurs on Friday in Kathmandu, they said the prospects of political and policy stability following the formation of near-two-third majority government, has enhanced their confidence to invest in Nepal.

Business delegation led by Toshiyuki Nakamura had discussed the investment prospects with owner of Taro Treks and Expedition, and Taro Japanese Language Consultancy Bishal Bhattarai, President of Trekking Agencies Association of Nepal Sagar Pandey, Member of Hotel Association of Nepal Bidhata Shrestha, Director of Royal Express Cargo Pramod Dhakal, and tourism entrepreneurs Amrit Dhakal and Furi-G.Sherpa, among others.

"Initially, we are interested to make an investment in a Japanese cuisine restaurant," said Toshiyuki. He runs seven companies in Japan in hospitality, transport and logistics sectors. He has employed several Nepali workers in his companies and wants to launch a restaurant within a couple of years so that when Nepalis return from Japan they could be employed here. It is about employing the skilled workers in the field, he said.

Talking about the decreasing number of tourists, Japanese entrepreneurs said that the depreciating Japanese currency against the US dollar, increased flight fare and lack of direct connectivity had negatively impacted it. Stating that the media coverage of recent Bhotekoshi floods had scared them and they were about to cancel the trip to Nepal, they said that when they arrived here, the situation was otherwise.

Nepali entrepreneurs have expressed concerns over the decreasing number of Japanese tourists since the aftermath of the COVID-19 pandemic. Bhattarai, who hosted the discussion, said that attracting tourists and investment is a highly sensitive issue, so the government, private sector and media should exhibit utmost sensitivity while dealing with them.

Nepali entrepreneurs also said that the government should launch initiative to tell the international community that the country is safe for tourism and investment, and only a small part of the country is affected by the devastating floods. 

Published in The Rising Nepal on 6 September 2026.   

NDP to issue 20% share to the public

Kathmandu, Sept. 1

The second annual general meeting of Nepal Development Public Limited (NDP) has approved a proposal to distribute bonus shares equivalent to 2.5 per cent of the company's paid-up capital from the profit earned in the last fiscal year 2025/26. That year, NDP posted a profit of Rs. 73.3 million after tax. The company's total paid-up capital has now reached Rs. 1.18 billion.

It also approved a cash dividend of Rs. 1,557,343 to cover the tax payable on the bonus shares.

The meeting also approved a provision to allocate 20 per cent of the company's issued capital for the general public, and authorised the Board of Directors to merge with or acquire other companies whose objectives are aligned with those of the company. The company was established with an aim to make it a Rs. 10 billion financial institution.

The company statute has been amended to make it able to seek support from international funds such as the Green Climate Fund and blended finance facilities.

Speaking at the meeting held earlier this week, company chairman Chandra Prasad Dhakal said that the company was established with the objectives of mobilising investment for large infrastructure projects from domestic capital, sending a message that Nepal has an investment-friendly environment, and creating investment and employment opportunities within the country for young people.

“Economic transformation is possible only if we can mobilise capital scattered across the country and abroad and invest it in productive sectors, major infrastructure and important projects,” he said. According to him, the company's shareholder base has now expanded to all 77 districts of the country.

Published in The Rising Nepal on 2 September 2026.   

NRNA seeks simplified legal procedures, investment security in Nepal

Kathmandu, Aug. 16

Representatives of the Non-Resident Nepali Association (NRNA) have said they remain keen to invest in Nepal but identified two major obstacles - cumbersome legal procedures and concerns over investment security.

Speaking at the 11th Asia-Pacific Regional Conference of the Non-Resident Nepali Association (NRNA) that concluded in Guangzhou of China on Sunday, they said that Nepalis living across the Asia-Pacific region, as well as in the United States and Europe wanted to do something in Nepal but were primarily discouraged by the lengthy legal processes and security concerns they faced when investing in the country.

Former NRNA president Binod Kunwar, who is a successful businessman based in South Korea, said Nepal's tendency to engage in more talks than action was also a problem. He said investors were discouraged by cumbersome legal procedures and prolonged delays, the NRNA informed in a statement.

“I am investing equally in Nepal and South Korea. My experience is that there is too much talk and too little work in Nepal,” Kunwar said while adding that Nepal's laws sometimes prevented people from working for even four or five hours, making investment in the country unnecessarily difficult.

Former NRNA president Dr. Upendra Mahato said every Nepali living abroad was concerned about when their country would develop, while many also asked themselves, “If I don't do it, who will?” He urged the government to turn this sentiment into an opportunity.

According to him, Nepal will be built by Nepalis themselves. "If a country could be developed through good and sweet words alone, it would have been developed long ago. We Nepalis are good at talking,” he said. “Now we need to develop the country while preserving our civilisation. This is the one commitment we all need to make.”

Dr. Mahato said that the investment by the NRNs alone cannot make Nepal prosperous, but it cannot happen without them either. The government must now understand this reality and introduce investor-friendly laws. There should be no delay in the legal reforms required for restructuring, he said.

Arguing that there was no better place for investment than Nepal, Mahato said every country in the world faced problems, but the key was how those problems were addressed and how investment was protected.

NRNA Senior Vice-President Rabin Sherchan said there were many areas for investment in Nepal, while some new sectors also needed to be identified, adding that investment should now be increased.

Former NRNA China president Nirmal Sharma Chaulagain said there was considerable scope for cooperation between Nepal and China but that inadequate infrastructure remained a major obstacle. He said they could currently supply goods to Nepal through the northern border points for only about six months a year and that industrialists suffered substantial losses when goods were left at border points for extended periods because the government failed to develop infrastructure on time.

Similarly, former NRNA China president Rohit Agrawal said every investment needed to be linked to profitability and that this required legal guarantees.

“In Nepal, legal complications and prolonged problems are constantly cited, making investors wonder whether or not to bring their investment into the country,” he said. “I invested in a hydropower project, but I do not know when it will start generating electricity, while I am already bearing losses.”

Arun Kumar Subedi, who has been researching investment issues, said NRNA investment would not come to Nepal as long as the existing system and laws allowed government officials to focus on finding ways to obstruct investors rather than providing the facilities they needed to invest and operate their businesses.

He added that the income of Nepalis living abroad was more than three times Nepal's GDP, and the country needed to benefit from this resource.

Roshan Khanal, acting ambassador of Nepal to China, said the embassy would provide support if potential investment areas were properly identified. She said 61 per cent of Nepalis who have achieved success in business while living in China had expressed to her their desire to return to Nepal.

 

Demand for citizenship continuation

Meanwhile, the NRNA has once again renewed its demand for the continuation of Nepali citizenship by descent for Nepalis and people of Nepali origin living abroad.

The conference reiterated the NRNA's long-standing call to put the concept of ‘Once a Nepali, always a Nepali’ into practice. Participants stressed that non-resident Nepalis should not be viewed merely as a community that sends remittances, but as partners in Nepal's economic, social and overall development, according to the NRNA.

NRNA President Dr. Hemraj Sharma said that whenever the expectations of non-resident Nepalis are discussed, issues such as citizenship, voting rights, British Gurkhas and people of Nepali origin who are foreign nationals (PNOs) inevitably arise.

According to him, the major common demand of Nepalis living in 110 countries is the continuation of citizenship by descent.

Dr. Sharma said Nepal needed an umbrella law covering all these groups. Rather than addressing citizenship issues in isolation, he argued that a comprehensive legal framework should be developed to resolve the problems faced by non-resident Nepalis.

NRNA chief patron and former president Dr. Badri KC said non-resident Nepalis who send substantial amounts of remittances to Nepal are still having to fight for their citizenship rights.

He said Nepalis and people of Nepali origin who have achieved success in education, business and various other fields abroad, particularly the younger generation, want to return to Nepal and contribute to the country. Nepal should therefore create an environment in which their knowledge, skills, capital and experience can be utilised, he said.

Speaking on the occasion, Bhishmaraj Angdembe, parliamentary party leader of the main opposition Nepali Congress, said the focus should now shift from emotional appeals to integrating the diaspora as a partner in Nepal's development.

He said citizenship should not become a major obstacle preventing the diaspora from maintaining links with Nepal. The government should take the initiative, he said while adding that other political parties, including the opposition, were also ready to cooperate.

Ain Mahar, chief whip of the CPN-UML, said he was positive about providing non-resident Nepalis with a dignified Nepali identity. “Let the government initiate the process, we are ready for discussions,” he said.

Likewise, Rastriya Swatantra Party (RSP) lawmaker Manish Jha said the government was preparing to address some of the demands of non-resident Nepalis, including citizenship.

Jha said he had been discussing the citizenship issue with Finance Minister Swarnim Wagle and Foreign Minister Shisir Khanal, and that the issue remained a government priority. 

  Published in The Rising Nepal on 17 August 2026.  

Govt to establish high-priority response desk for investors

Kathmandu, July 28

The government is set to establish a high-priority response desk at the Ministry of Finance to address concerns raised by the private sector as it steps up efforts to improve the investment climate and accelerate economic reforms.

Finance Minister Dr. Swarnim Wagle said at an interaction with the entrepreneurs on Tuesday that the proposed response desk would coordinate with relevant ministries, departments and agencies to resolve legitimate concerns raised by businesses. He said the government intended to replace delays in decision-making with a system focused on timely action.

According to him, the government had adopted a roadmap to repeal outdated laws, improve the investment environment, simplify and make the tax system more transparent, and enhance the ease of doing business.

He also said that expanding the capital market and alternative financing instruments, reforming the labour market and strengthening digital public services will get equal priority.

He said 42 laws directly related to the economy were currently under amendment or repeal.

FM Dr. Wagle said the government had identified three priorities - enabling existing industries to operate at full production capacity, creating conditions for businesses to expand with confidence and encouraging new enterprises and investment, particularly by young entrepreneurs.

According to him, improvements in these areas would contribute to higher economic growth, employment generation, revenue collection and exports. "The government's role is not to run industries but to create an investment-friendly environment in which businesses can operate without unnecessary obstacles," he said.

The finance minister has also sought feedback from the private sector on the factors behind high production costs, barriers preventing industries from operating at full capacity, reasons for weak investment decisions and administrative and legal hurdles related to land acquisition, electricity supply and tariffs, labour, transport, finance, raw materials and market access.

Likewise, the finance minister said the implementation of economic reforms announced through the national budget was progressing. Legal amendments, regulations, operating procedures and institutional reforms would be introduced according to a fixed timetable, while efforts to increase capital expenditure, speed up project implementation and strengthen the capital market and financial sector would continue in parallel.

He reiterated the government's commitment to protecting private sector investment and creating conditions that would allow businesses to earn returns and reinvest, saying private sector growth was essential for Nepal's economic transformation. 

Published in The Rising Nepal daily on 29 July 2026.         

Kratikal's IPO oversubscribed

Kathmandu, July 10

Kratikal Tech Limited, the India-based AI-powered cybersecurity company co-founded by Nepali entrepreneur Dip Jung Thapa, has achieved a landmark milestone with an impressive 205.08 times on the stock market.  

"Its Initial Public Offering (IPO) was oversubscribed by an impressive 205.08 times on the Bombay Stock Exchange (BSE), marking what is believed to be the first listing of a venture founded by a Nepali entrepreneur on the Indian stock market," the company informed in a statement.

The IPO opened for subscription on June 30, 2026, and closed on July 2, 2026, receiving overwhelming investor confidence.

According to the company, founded in 2013 in Noida by three college friends — Dip Jung Thapa, Pavan Kumar, and Paratosh Kumar — Kratikal Tech Limited has grown into a trusted provider of cutting-edge cybersecurity solutions.

Thapa, a native of Khotang, Nepal, serves as Co-Founder and Chief Operating Officer. A B.Tech graduate from Motilal Nehru National Institute of Technology (MNNIT), he previously worked as a Product Manager at Paytm.

“Seeing our vision validated by such massive investor enthusiasm is deeply humbling. This IPO is not the destination, but the launchpad. With fresh capital, we are now geared to accelerate our global expansion, strengthen our innovative platforms, and create even greater impact in cybersecurity across borders,” Thapa said.

The spark for Kratikal Tech Limited came in 2013 when one of the co-founders had his email hacked. That personal incident highlighted a widespread need and inspired the trio to build practical, enterprise-grade cybersecurity solutions.

Today, the company offers an AI-driven, SaaS-based security platform along with expert consulting and regulatory compliance services. Its solutions serve clients across key sectors including BFSI, fintech, telecom, IT/ITES, healthcare, pharmaceuticals, e-commerce, and manufacturing in India and international markets.

Having raised funding from four angel investors since 2017, Kratikal Tech Limited is currently valued at approximately Rs. 3.23 billion. "Proceeds from the IPO will fuel aggressive global expansion plans, including entry into the United States and the Middle East," read the statement. The company has also partnered with GAP Technologies in Nepal to strengthen cybersecurity capabilities in its founders’ homeland.

Published in The Rising Nepal daily on 11 July 2026.        

Monetary Policy is positive and balanced: FNCCI, NICCI

 Kathmandu, July 8

The Federation of Nepalese Chambers of Commerce and Industry (FNCCI) has termed the monetary policy for the upcoming Fiscal Year 2026/27 as 'positive and balanced', and said it would help boost the confidence of the private sector.

"The policy seeks to maintain a balance between price stability, financial sector stability and higher economic growth at a time when the country's economy is gradually improving," the business body said about the policy unveiled by the Nepal Rastra Bank (NRB) on Tuesday.

It said the policy recognises the decisive role of the private sector in achieving the government's target of 7 per cent economic growth as announced in the budget for the next year.

FNCCI President Anjan Shrestha said the flexible policy measures aimed at expanding private sector investment, increasing production, creating employment and stimulating economic activities were appropriate.

According to the FNCCI, several issues that it had been raising for a long time had been addressed in the policy. These include measures to remove unlimited liabilities arising from personal guarantees, manage non-performing loans of sick industries and revive stressed loans.

It also welcomed provisions to determine share-backed lending limits based on institutional capacity and to facilitate lending for large electric vehicles used in public transportation.

However, FNCCI stressed that the upcoming directives should clearly address the restructuring and rescheduling of loans for small, medium and large businesses, as well as sector-specific lending.

Likewise, the decision to keep the policy rate, standing deposit facility rate, bank rate, cash reserve ratio, statutory liquidity ratio and standing liquidity facility unchanged would help maintain policy stability, read the statement.

"The NRB's projection of a strong external sector, supported by adequate foreign exchange reserves, remittance inflows, tourism income and growth in service exports, would help stimulate the domestic economy," said the FNCCI.

However, it maintained that the success of the monetary policy would depend on its effective implementation. It called for easier and affordable credit flow to industry, agriculture, tourism, energy, information technology, infrastructure, export-oriented industries and small and medium enterprises to achieve the 11 per cent credit growth target and utilise excess liquidity in the banking system.

It further called for a more flexible approach towards loan classification and loan-loss provisioning, a two-year relaxation of watch-list and blacklisting provisions.

Meanwhile, Nepal-India Chamber of Commerce & Industry (NICCI) appreciated the Monetary Policy as the continuation of a cautiously accommodative monetary policy aimed at supporting higher economic growth while maintaining macroeconomic stability.

It welcomed the decision to maintain policy rates, continue the existing Interest Rate Corridor, preserve adequate liquidity in the banking system and maintain exchange rate stability with the Indian Rupee. "These measures are expected to sustain business confidence and create a more predictable investment environment," NICCI said in a statement.

It said that although the banking system currently possesses ample liquidity and historically low lending rates, private sector credit expansion remains relatively subdued. This indicates that the principal constraints are no longer the availability or cost of finance, but rather investor confidence, policy predictability, project readiness, regulatory bottlenecks and the pace of implementation of economic reforms, read the statement. 

Published in The Rising Nepal daily on 9 July 2026.       

Nepali Roots Summit concludes in Munich

Kathmandu, June 5

The second Nepali Roots Summit 2026 has concluded in Munich, Germany, bringing together Nepali entrepreneurs, researchers, students and community leaders from across the country to strengthen professional networks and promote collaboration with Nepal.

The event was organised by Nepali Roots e.V., a community organisation established to connect Nepali professionals, academics, businesspeople and students living in Germany and Europe. The organisation said in a statement on Sunday that it aims to facilitate knowledge exchange, professional cooperation and long-term engagement between the Nepali diaspora and Nepal.

The summit brought together 96 participants from different German cities.

Acting Nepali Ambassador to Germany Sagar Prasad Phuyal said the government was placing greater emphasis on economic diplomacy alongside traditional diplomacy. He said the expertise, skills and international networks of the Nepali diaspora could contribute to sectors including tourism, trade, industry, energy, information technology, commerce and innovation.

Likewise, NRNA Germany President Lokmani Dhakal said closer cooperation between Nepali Roots and the organisation was necessary to address the priorities of younger generations and strengthen engagement within the diaspora.

Nepali Roots Secretary Jitendra Kasoudhan said the growing presence of Nepali professionals in leadership positions around the world highlighted the need for stronger networks and sustained cooperation in areas including research, technology, entrepreneurship and investment.

Discussions covered leadership, entrepreneurship, innovation, artificial intelligence, clean energy and diaspora leadership. Speakers said stronger professional networks, mentorship and collaboration were needed to translate individual achievements into wider social and economic benefits.

Nepali Roots President Dr. Kritan Gautam said the role of the Nepali diaspora should extend beyond remittances to include contributions through research, technology, innovation, entrepreneurship and global professional networks.

The summit also discussed policy measures to strengthen engagement with the diaspora, including remote voting, non-resident Nepali citizenship and the effective mobilisation of diaspora investment funds. 

Published in The Rising Nepal daily on 6 July 2026.       

NICCI, GITA sign MoU to promote trade partnership

Kathmandu, June 23

The Nepal-India Chamber of Commerce and Industry (NICCI) has signed a Memorandum of Understanding (MoU) with Global Investment and Trade Advisors LLP (GITA), India, to promote trade, investment, institutional partnerships, and economic cooperation between Nepal and India.

“It is a shared commitment to strengthening cross-border business linkages, facilitating knowledge exchange, and creating new opportunities for investors and enterprises in both countries,” NICCI said in a statement.

Under the agreement, NICCI and GITA will work together on a range of initiatives, including business delegations, investment outreach programmes, sectoral engagements, policy dialogues, roadshows, and stakeholder consultations.

According to NICCI, the collaboration is designed to foster structured engagement between businesses, investors, chambers of commerce, government agencies, and development institutions, while encouraging greater participation in emerging economic opportunities across key sectors.

The MoU was signed by Marshal Rathour, Director at NICCI, and Priya Rawat, Managing Partner of GITA. Speaking on the occasion, representatives from both organisations emphasised the importance of stronger institutional cooperation in advancing Nepal-India economic relations. 

Published in The Rising Nepal daily on 24 June 2026.   

Over 99% people have access to electricity

Kathmandu, May 27

Access to electricity in Nepal has reached 99.1 per cent of the population by mid-March 2026.

According to the Economic Survey 2025/26 presented at the Parliament by Finance Minister Dr. Swarnim Wagle, total installed electricity capacity stands at 4,105 megawatts, including 3,798 MW hydropower and 142 MW solar energy.

Likewise, electricity generated by the Alternative Energy Promotion Centre is 106.24 MW, thermal energy (thermal plant) is 53.4 MW, and electricity co-generated through the sugar mill co-production method is 6.0 MW.

In the first eight months of the current Fiscal Year 2025/26, about 2,918 GWh of electricity was exported to India while 590 GWh of electricity was imported.

Last year, Nepal electricity export was 2,332 GWh, and import stood at 1,712 GWh.

It is estimated that an additional 666 MW of electricity will be generated from the construction of various projects by mid-July 2026. It will bring Nepal's electricity capacity to 4,626 MW.

“With the increased use of electricity, the consumption of petroleum products has slightly decreased. By mid-March of this fiscal year, imports of petrol and diesel decreased by 10.0 per cent and 9.9 per cent, respectively, compared to the corresponding period of the previous year,” noted the survey.

85^th in SDG ranking

According to the survey, in 2025, Nepal ranked 85^th among 167 nations by achieving a score of 68.58 on the Sustainable Development Goals Index. In Nepal's context, the ‘spillover score’ related to the SDGs is 94.85.

To achieve the SDGs, Nepal needs to make an annual average additional investment of 755 billion during the remaining period (about five years).

By mid-March, the number of beneficiaries receiving social security allowances had reached 3.6 million which includes 46.14 per cent senior citizens above 70 years of age.

Likewise, in the contribution-based Social Security Fund, 2.85 million workers have been registered. But more than three-quarters of these are Nepali migrant workers.

The government has collected the details of 21 million citizens for National Identity Cards, while only 4.03 million cards have been distributed.

Social indicators improve

The report maintained that social sectors indicators are showing positive improvements, with absolute poverty having dropped to 20.27 per cent and multidimensional poverty to 17.4 per cent, and the Gender Development Index standing at 0.885.

Nepal's Human Development Index (HDI) stands at 0.622. The average life expectancy of Nepalis has reached 71.3 years. The youth (15-24 years) literacy rate is 94.2 per cent.

The number of government health institutions has reached 8,976. The maternal mortality rate per 100,000 live births has dropped to 151, the infant mortality rate to 27 per 1,000 live births, and the under-five child mortality rate to 31.

The health insurance programme has expanded to all local levels. Up to mid-March, the number of citizens enrolled in this programme is more than 2.14 million.

Access to basic drinking water has reached 97.0 per cent of the population, but access to safe drinking water is limited to only 29.0 per cent.

Similarly, in the academic session 2025, the net enrollment rate at the basic level (grades 1-8) is 97.8 per cent, and secondary level (grades 9-12) 51.6 per cent. In terms of net enrollment rates, the Gender Parity Index is 1.02 per cent for the basic level and 0.9 for the secondary level.

Likewise, irrigation facilities are expanded to 44.6 per cent of agricultural land and 62.6 per cent of irrigable land. Now, forest covers 46.08 per cent of the total land area of Nepal while the global ratio is 32.0 per cent of the total land area.

Meanwhile, the number of members associated with a total of 32,325 cooperative societies reached 11 million. Those cooperatives are expected to mobilse savings of Rs. 1,029 billion.

Rs. 625 billion foreign investment approved

The government has approved investments worth Rs. 492 billion by mid-March, consisting of Rs. 389.74 billion from the Department of Industries and Rs. 02.26 billion from the Investment Board Nepal. Along with this, total approved investment in the industrial sector has reached Rs. 5444.06 billion.

Foreign investment worth Rs. 625.58 billion has been approved at the Department of Industries for a total of 7,951 projects. Among the approved foreign investments, the highest is in service industries at 28.3 per cent, and the lowest is in mineral industries at 1.3 per cent.

The number of registered companies reached 369,646, of which private limited companies are 97.5 per cent, while other companies comprise 2.5 per cent.

As public investment in the physical infrastructure sector increases gradually, the density of blacktopped roads built by the federal government has reached 138.7 meters per square km. A total of 104,906 km of roads have been expanded across the nation.

The report also mentioned that financial access is expanding. The number of deposit accounts in banks and financial institutions reached 620.06 million, while the number of loan accounts reached 2.04 million. Mobile banking users reached 29.4, while internet banking users reached 2.37 million.

For this year, the National Accounts Office has estimated the growth rate of 3.85 per cent while the agricultural and non-agricultural sectors are estimated to contribute 24.0 perc ent and 76.0 per cent respectively. With this, the Gross Domestic Product of the current fiscal year is estimated to be Rs. 6600.09 billion.

The survey also noted that the share of consumption in Nepal's economy remains high. The share of consumption is estimated to be 90.3 per cent this year. Within total consumption, the shares of the private sector, government sector, and non-governmental sector are estimated to be 91.26 per cent, 6.62 per cent, and 2.12 per cent, respectively.

Published in The Rising Nepal daily on 28 May 2026.  

FNCCI wants upcoming budget to revive business confidence

Budget will uphold good governance: FM Dr. Wagle

 

Kathmandu, May 17

Through the budget of the upcoming Fiscal Year 2026/27, the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) has advised the Finance Ministry to revive declining business confidence, generate demand in the market and re-attract stalled investment.

Employment generation should also be the top priority and get required polity attention, the FNCCI informed in a statement.

Submitting its budget recommendations to Finance Minister Dr. Swarnim Wagle at the Ministry of Finance (MoF) on Sunday, the FNCCI suggested to introduce the upcoming budget in a manner that would bring about economic transformation.

Stating that the forthcoming budget is not merely an ordinary annual document but one arriving at a critical juncture in Nepal’s economic history, the FNCCI suggested a fundamental transformation of the current economic model.

Presenting the recommendations to FM Dr. Wagle, President Anjan Shrestha said that an economy based on remittance and imports could not ensure long-term prosperity, and that the private sector remained hopeful of a transformative budget.

“Frequent annual changes in tax policy have eroded investor confidence. The private sector has called for an end to the unstable practice of annual fiscal acts and the implementation of a single revenue code with clear interpretation, along with the formation of an autonomous Revenue Board," he said.

Shrestha further added that there must be a clear assurance that tax laws will not be applied retrospectively.

The country’s industrial production capacity is currently limited to 40 per cent, the construction industry has reached the most difficult period in its history, and the contribution of the private sector to gross fixed capital formation has declined from 28 per cent to 16 per cent over the past four years. In such a situation, the budget must revive the economy, said Shrestha.

The FNCCI also drew the government’s attention to the fact that while Nepal’s average economic growth rate over the past two decades has remained at only 4 per cent, tax growth has reached 11 per cent. Revenue as a proportion of GDP has exceeded 19 per cent, making Nepal one of the countries with the highest tax burdens in South Asia.

According to the FNCCI, high taxation has increased informal transactions, illegal trade and business migration.

Referring to Nepal’s graduation from a least developed country to a developing country, the FNCCI warned that Nepal risks losing preferential market access after graduation, while transport and financing costs could further weaken Nepali products. It therefore demanded a special and long-term integrated policy for export-oriented industries such as textiles, carpets, garments, pashmina and felt products.

In its recommendations, the FNCCI also proposed a legal provision allowing Nepali companies to invest a certain portion of export earnings abroad in order to expand at regional and international levels.

The FNCCI called for stronger control over smuggling through open borders and the immediate removal of distortions under SAFTA whereby finished goods are imported more cheaply than raw materials.

President Shrestha also drew the Finance Minister’s attention to the need to safeguard the business environment and address the criminalisation of entrepreneurship.

Responding to the recommendations, Finance Minister Dr. Wagle expressed commitment to introducing a budget that would uphold good governance, strengthen private sector development, encourage investment and support employment generation.

Clarifying that the government remains committed to moving forward with the private sector as its principal partner, he urged the FNCCI delegation to remain optimistic.

“The government is sensitive to the decline in private sector confidence and the weakening market demand. The upcoming budget will lay the foundation for transforming the economic model itself,” said Finance Minister Dr Wagle.

Regarding the government’s post-LDC priorities, FM Dr. Wagle said the government had taken the matter seriously. However, he stressed that even if there were proposals to delay the timeline, preparations for the post-graduation phase must continue.

Published in The Rising Nepal daily on 18 May 2026.

FNCCI president announces '6 Pillars, 60 Initatives' scheme

Kathmandu, May 7

Newly elected president of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) Anjan Shrestha has announced a '6 Pillars, 60 Initiatives' programme for his three-year tenure.

Speaking at an introductory and interaction programme with newly elected office-bearers after assuming office, in Lalitpur on Thurday, he said the programme would prioritise the long-term interests of the private sector, the creation of an investment-friendly environment, and the institutional strengthening of the federation.

“I have prepared the ‘6 Pillars, 60 Initiatives’ programme with priority given to the long-term interests of the private sector, the creation of an investment-friendly environment, and the institutional strengthening of the FNCCI. The implementation of strategic programmes and action plans in line with this framework will remain my priority during my three-year term,” Shrestha said.

Outlining the priorities of his tenure, he expressed commitment to implementing detailed action plans related to it in phases. The programme aims to strengthen the institutional capacity of the federation and make the collective voice of the private sector more effective, credible and result-oriented.

It also includes priorities such as protecting the rights and interests of the private sector, promoting industries and businesses, ensuring and expanding investment security, enhancing the effectiveness of policy advocacy, and strengthening coordination with member organisations in line with the federal structure.

Likesie, modernising service delivery, developing digital systems, promoting youth entrepreneurship and innovation, and expanding international trade and economic diplomacy and also the priority.

Outgoing FNCCI president Chandra Prasad Dhakal stressed that the federation’s agenda should focus on promoting the private sector.

He said that during his tenure, the Federation had made efforts towards the country’s economic development and prosperity, adding that the government had endorsed the Private Sector Protection and Promotion Programme (PSPPP) through the Cabinet as proposed by the FNCCI, which he said would support the protection and promotion of the private sector.

Siilalry, former president Mahesh Lal Pradhan stressed that the federation should play a stronger role in creating an industrial and business-friendly environment in the country. He said the federation should be able to advise the government on creating an environment for economic development and prosperity and also develop the capacity to question the government if necessary.

Similarly, former president Bhawani Rana urged the government to work with the private sector for economic development and prosperity and advised the new executive committee to work together on economic agendas.

District and Municipal vice-president Krishna Prasad Sharma stressed the need to strengthen district and municipal chambers of commerce and industry across the country to create an industrial environment and to work towards changing perceptions towards entrepreneurs and businesses.

Another District and Municipal vice-president, Dil Sundar Shrestha, said economic development was not possible without the development of industry and business, and said that the government should ensure investment and physical security to create a business-friendly environment.

Likewise, Commodity vice-president Naresh Lal Shrestha said that the problems faced by businesses across the country were shared issues and stressed the need to work collectively on economic agendas rather than taking sides.

Associate vice-president Prabal Jung Pandey pointed to the need for policy stability to create an industrial environment and said priority should be given to issues ranging from tax system reforms to concerns faced by businesses.

Published in The Rising Nepal daily on 8 May 2026.           

Asia Pacific's integration to global value chain doubles from 2000

Nepal remains on periphery

 

Kathmandu, May 6

The Asia Pacific region accounted for a third of global value chain trade, with its developing economies doubling their share from 9 per cent to 18 per cent from 2000 to 2023, the Asian Development Bank’s (ADB)'s latest report said.

The Asian Development Policy Report 2026 launched at ADB’s 59th Annual Meeting in Samarkand in Uzbekistan on Wednesday is titled 'Global Value Chains and Inclusive Development'.

It noted that greater specialisation in the stages of global production has helped Asia and the Pacific achieve economic growth, create jobs, and reduce poverty over the past quarter century.

Some economies—particularly in East and Southeast Asia—have become deeply embedded in regional and global production networks, occupying central positions that allow them to capture significant value addition. Others, including many smaller, lower-income, or geographically remote economies, have participated less and remain largely excluded from these networks.

“Greater geoeconomic fragmentation reduces the opportunities for firms to benefit from global value chains (GVC), which risks stifling industrialisation and growth in economies stuck in low-value roles,” said ADB Chief Economist Albert Park. “To bridge the gap, support for less-developed economies is crucial to help them take advantage of emerging technologies, and to strengthen infrastructure, logistics, and the business environment to enhance productivity and competitiveness.”

The report said that the benefits of global value chains remain uneven, mainly benefiting large productive firms, while small and medium enterprises face barriers due to high compliance costs and limited capabilities.

Nepal on the periphery

According to the report, a few economies, including Cambodia, China, South Korea, and Nepal increased both forward and backward participation, with forward participation rising more sharply than backward participation in China.

However, many smaller economies remain marginal participants, highlighting the uneven nature of global value chain integration in the region. Landlocked economies such as Bhutan and Nepal, resource-dependent economies, including the Kyrgyz Republic and Laos, Maldives, and several Pacific Island economies, face constraints from small domestic markets, geographic isolation, and limited industrial capabilities. In 2023, the bottom 10 Asian economies in backward GVC trade together accounted for just 0.86 per cent of total regional backward GVC trade, with a similar share for forward participation.

Nepal also has greater intra-regional share compared to its peers despite being on the periphery of the GVC.

Likewise, the report said that geopolitical tensions, supply chain disruptions, and rapid technological changes are reshaping how economies participate in global value chains.

 

'Resilience should be developed'

The report identifies three policy priorities to support global value chain integration – resilience, environmental sustainability and inclusion. "Strengthening resilience requires coordinated improvements in robust connective infrastructure, the capability of firms to respond flexibly to changing circumstances, and policy frameworks that enable diversification of markets, inputs, and partnerships," read the report.

Likewise, compliance with evolving environmental and sustainability standards is becoming a general requirement across global value chains. Strengthening policies in areas such as standards, certification, and traceability can help firms to adopt cleaner technologies and production processes.

Similarly, achieving inclusive outcomes requires coordinated actions that reduce trade costs through infrastructure investment, open trade policies, and trade facilitation; develop worker skills and firm capabilities; and support access for small and medium-sized enterprises to finance, digital platforms, and export opportunities.

Published in The Rising Nepal daily on 7 May 2026.           

RSP Chair Lamichhane urges private sector not to panic

Government seeks partnership with businesses while maintaining strict oversight on activities that could harm the economy

 

Kathmandu, May 3

Rastriya Swatantra Party (RSP) Chairperson Rabi Lamichhane has urged businesspeople not to be gripped by fear or anxiety.

Speaking at a meeting with representatives of the private sector in Lalitpur on Sunday, he said that the government’s objective is not to discourage the private sector but to pursue policy reforms to achieve long-term impact on the economy.

Chair Lamichhane called on the private sector to support the government’s good governance campaign, and said that the government intends to move forward in partnership with business communities.

However, he noted that the state will maintain strict oversight over activities that could weaken the economy. Referring to past instances where political instability and circumstances forced businesspeople under pressure from various power centres, he said, “The government has taken lessons from such experiences and assured that such a situation will not be repeated.”

Likewise, he also urged the business community not to worry the slightest. “As we push forward the good governance agenda at a rapid pace, some questions may have arisen—please take them in stride. The government has no intention of undermining any business,” he said.

According to him, the government wants to move towards a new departure in good governance and economic growth. “There may be some discomfort in this process. I chose to sit down with you precisely because the private sector appeared uncertain and somewhat fearful. There is no reason for you to be afraid or anxious,” said Lamichhane.

However, the government has had to act firmly because certain individuals and actors had begun to move in a way that effectively placed the country’s economy under their control, he said. The state must intervene in time, and that is what the government is doing at present.

Chair Lamichhane added that the state must act firmly against institutional irregularities that could severely damage the economy. “We understand that in the past, due to political instability, you may have been compelled to knock on the doors of political leaders and compromise certain norms and values,” Lamichhane said. “Now, you can be assured that no businessperson needs to run to my home or party office. Policies themselves will provide you with protection.”

He said that the current government will operate based on the commitments made to the public during the election. He also advised business leaders to assess their own shortcomings, conduct internal audits, and work with the state to correct past mistakes.

 

Crucial role of private sector

Emphasising that policy reform, good governance and economic improvement are the government’s primary goals, Lamichane said the role of the private sector will be crucial in transforming Nepal into a middle-income country within the next five to seven years. He called on businesses to operate with confidence, assuring that the government is committed to creating an investment-friendly environment.

Meanwhile, Chair Lamichhane said they are grappling with whether to remain import-oriented or shift towards a production-based economy.

“Your interest in reviving ailing industries is commendable, and we are positive about it. The government is also supportive of enabling the private sector to operate and expand. Out of every ten people, perhaps one or two may be employed by the state, but it is the private sector that employs the remaining eight,” he said.

According to him, the government cannot allow loss-making companies (particularly from the hydropower sector) to issue IPOs and risk the public’s money. The government is clear on this.

Likewise, the government is open to reducing the threshold for income tax. It is not reasonable for individuals to be required to pay up to 50 per cent of their income in tax, and we are prepared to undertake reforms, he said.

Lamichhane also assured the business community that the government is ready to protect the private sector, producers, industrialists and businesspeople alike.

 

Private sector needs confidence boost

Speaking at the programme, President of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) Chandra Prasad Dhakal said that the private sector is a sphere of stability and should be allowed to operate smoothly. However, it has repeatedly come under attack during various movements and has often been the primary target.

“This should not be the case, and we strongly object to such practices. Likewise, the attempt to bring the private sector under the ambit of anti-money laundering measures is a matter of concern,” he said.

Pointing to Bangladesh’s deferral from the LDC, Dhakal said that in light of various implications and potential impacts, perhaps Nepal should consider waiting for some time. Bangladesh was graduating to a developing country in November, along with Nepal. But citing the youth movement and economic crisis, it sought a deferral, which is accepted by the United Nations.

President of the Confederation of Nepalese Industries (CNI) Birendra Raj Pandey said that at a time when capital formation has declined, there is a need to provide incentives and boost confidence.

“Greater focus is required on domestic production, consumption and employment. With the budget season underway, the government needs to pay close attention to these issues,” he said.

Likewise, Acting President of Nepal Chamber of Commerce (NCC) Deepak Malhotra said that there are high expectations from the RSP-led government with a clear majority; it must play an active role in development and economic reform.

“To bring roughly 40 per cent of the economy that remains in the informal sector into the formal fold, it is necessary to reduce customs duties, excise duties and land revenue taxes,” he said.  

 

‘Overregulation is felt’

Former President of CNI Hari Bhakta Sharma said that businesses have felt that there is excessive overregulation.

According to him, the economy has long been import- and customs-revenue-driven, and has operated in this manner for over a century. “We need clarity on whether we will continue with an import-oriented model or shift towards a production-based economy, and proceed accordingly with a clear direction,” he said.

Stating that a critical departure is necessary, Sharma said that it is not feasible for a single sector alone to drive production. The country should advance simultaneously in four key sectors—agriculture, tourism, light engineering and biopharmaceuticals—with focused attention.

He pointed to a need to review laws that allow for the detention of businesspeople before due hearing.

“The private sector is the engine of development. At present, business confidence has declined. The practice of detaining first and hearing later is flawed, our demand is for a policy that prioritises hearing first and taking action thereafter,” said Sharma. 

Published in The Rising Nepal daily on 4 May 2026.           

'Increase budget on ICT sector'

Lalitpur, Apr. 30

Stakeholders in the Information and Communication Technology (ICT) sector said that this sector has received a negligible amount of budget for the past several years while a significant portion of it remained unspent owing to government's inefficiency.

Speaking at a Pre-Budget ICT Discourse organised by ICT Foundation Nepal (IFN) in Lalitpur on Thursday, they said that attracting investment in data centres, creating skilled human resources and offering concession in taxes should be the priority of the government.

Manohar Bhattarai, an IT expert, said that a strategy should be formulated to increase the contribution of the ICT to the national Gross Domestic Product (GDP).

"The 100-point roadmap of the government has some ambitious programmes which need enabling legal provisions for their implementation. In the first place, the government needs to create a fully online system for business registration and renewal," he stated.

In order to attract the foreign investors, data centres should to be set up and be included it in its policy and programmes, said Bhattarai, adding that the data centres can be bundled with hydroelectricity production.

Likewise, Gaurav Raj Pandey, president of the NAS-IT, said that the country can achieve the target of US$30 billion IT export in the next one decade but creating required human resource is critical.

"Countries like the Philippines are earning more from IT export than remittances. They have offered several incentives and facilitation to companies coming to the country or entering the sector. Nepal must assure policy stability at least for a decade," he said.

According to Pandey, major focus of IT sector development and promotion should begin with IT education and job creation.

In the past three years, from 2022 to 2025, IT export has doubled to US$1 billion from US$ 515 million.

"We are good in terms of infrastructure for digital payment but Nepali citizens can't use it in India while Indians can pay digitally in Nepal," said Krishna Ram Dhunju, Director of the Nepal Rastra Bank who heads the Central Bank Digital Currency division.

Digital finance is a priority of the central bank as well as the government. There is a need to move ahead in a more coordinate manner. Isolated efforts are insufficient to facilitate the integrated development, according to Dhunju.

Similarly, Adesh Khadka, Joint Secretary at the Ministry of Communication and Information Technology, said that Nepal needs to distinguish the IT industry to address the demands and facilitate through policy creation.

Editor of Taksar magazine Gajendra Budhathoki said that the small amount of budget is also misallocated to the sectors like upgrading the postal services. "Most of the documents of the annual budget are full of lucrative slogans while implementation is not encouraging," he said. "About 40 per cent of the budget remains unspent due to the shortage of skilled human resource in the public institution." 

Published in The Rising Nepal daily on 1 May 2026.          

NICCI proposes CEO's roundtable during PM visit to India

Kathmandu, Apr. 30

Nepal-India Chamber of Commerce & Industry (NICCI) has proposed to organise a CEO's roundtable in New Delhi during the upcoming visit of Prime Minister Balendra Shah.

This event will help to connect Nepali business leadership with leading Indian business executives and prospective investors where the discussion on the potential projects and investments could be discussed, a delegation of NICCI said to Foreign Minister Shisir Khanal.

The delegation led by NICCI's President Sunil KC called on FM Khanal on Thursday.

It called for an expansion of Nepal's diplomatic footprint in India, proposing the establishment of Consulate General Offices or Trade Representative Offices in Mumbai and Bangalore.

The recommendation drew on current trade figures — approximately 80 per cent of Nepal's exports are directed to India, 60 per cent of imports originate from India, and around 85 per cent of third-country trade transits through Indian ports including Kolkata, Haldia, and Visakhapatnam.

"NICCI also aims to organize Nepal-India Partnership Summit in close coordination with Ministry of Foreign Affairs, Government of Nepal, and other concerned line ministries and private sector industries from both countries," it said in a statement.

The delegation also requested to operationalize a dedicated economic diplomacy mechanism with structured private sector participation, focused on export promotion, investment outreach, and tourism branding.

Formation of a Foreign Investors' Council under the Ministry of Foreign Affairs was also proposed to coordinate with diplomatic missions and facilitate inbound investment.

NICCI also informed FM Khanal of its plans to establish a Contact Office in New Delhi to support investment promotion, trade facilitation, and tourism outreach, and sought the backing of the Government of Nepal and the Embassy of Nepal in New Delhi.

Minister Khanal appreciated the idea of Investor’s Council and diplomatic footprint to expand in India.

Published in The Rising Nepal daily on 1 May 2026.          

Global Tourism Forum to help Nepal attract investment

Kathmandu, Apr. 28

President of the Global Tourism Forum (World Tourism Forum Institute) Bulut Bagci said that the Forum will help Nepal to get more Foreign Direct Investment in tourism and related infrastructure.

“We want to organise an investment summit in Kathmandu to bring the renowned companies and investors here. We discussed the issue with the government representatives as well as private sector entrepreneurs,” he said to The Rising Nepal.

If things go as planned, the summit will bring in multilateral agencies, world-class hotels, travel and tour companies, and other concerned agencies to Nepal.

Bagci led a delegation that included Serkhan Cepheci, CEO of Luxury DMC and the lifetime experiences promoter Richy Life, and Julia Kathrin Kleber, CEO of the Germany-based Kleber Group, which specialises in destination branding, tourism marketing, and investment promotion across Europe.

The delegation met with Finance Minister Dr. Swarnim Wagle, Minister for Tourism Khadak Raj Poudel and Minister for Urban Development Sunil Lamsal to discuss investment and promotion of tourism.

Bagci said that Nepal should actively reach out to potential investors and project developers, strengthen institutional trust and aggressively brant Nepal as a safe and stable destination for tourists and investors.

Meanwhile, it should also promise high-return in investment, he maintained.

Kleber said that Nepal could leverage the Global Tourism Forum platform to invite investors, contractors, and developers — particularly those seeking alternatives amid ongoing uncertainties in the Middle East — to explore opportunities in tourism infrastructure, real estate, and related sectors.

 

Attracting 5 million tourists

Bagci also said that Nepal has the potential to attract 5 million tourist in the next five to ten years.

“In tourism industry, coming from zero to 1 million is very hard, but 1 million to 5 million is rather easy feat to achieve,” he said.

However, Bagci said that Nepal should resolve the issues like taking the country out of the Safety Concern List of the European Union, operating the international airports and upgrading road infrastructure to facilitate easy access to major tourist destinations. “It is distressing that you need to spend about six hours to cover the Kathmandu to Chitwan distance, which should be about two hours,” he said.

Europe could be one of the source markets for high-end tourists to Nepal in the areas of trekking, mountaineering and adventure tourism.

According to Bagci, this is an appropriate time for Nepal to make new moves to usher the country into a new era from the old structure. “With this government, there is a new Nepal. New policies, new approaches, and new people with a lot of energy. It is very easy to attract investors as well as tourists to Nepal because there is no security issue here. Meanwhile,” he said.

Kleber said that Nepal has an advantage of strategic geographic location, favourable climate, capable workforce, and abundant clean energy resources. If more tourists and investors were attracted, they would act as the brand ambassadors of Nepal’s promotion.

The delegation was in Nepal at the invitation of the Nepal Tourism Board (NTB) and aimed at exploring substantial investment and development opportunities in Nepal’s tourism and infrastructure sectors.

According to the NTB, the delegation attended the Wild Nepal Safari Mart 2026 held in Meghauli in Chitwan.

They also held detailed discussions with officials from the Investment Board of Nepal (IBN) about potential large-scale investments, such as riverfront development and waterfront attractions, restate projects, amusement parks, and new tourism landmarks.

Likewise, infrastructure development and transfer of world-class technologies were also discussed at the meeting. 

Published in The Rising Nepal daily on 29 April 2026.         

SY Panel begins installation of new UPVC plant

Kathmandu, Apr. 15

SY Panel Nepal, a subsidiary of SY Company Limited, has laid the foundation stone for a new UPVC industry in Ratnanagar Municipality–14, Pithuwa, in Chitwan.

The foundation was jointly laid on Monday by Ratnanagar Mayor Pralhad Sapkota and the company’s CEO Hong Sung-bu during a formal ceremony.

Speaking at the event, Mayor Sapkota said the municipality would facilitate investors willing to establish industries in the area. "While local authorities would provide necessary support, priority in employment should be given to local residents," he added.

Once operational, the plant is expected to produce UPVC door and window profiles and other construction materials using advanced technology. According to the company, UPVC products are considered a durable, lightweight and environmentally-friendly alternative to traditional wood and metal materials, and the decision to establish the factory was based on growing market demand in the country.

Hong said the factory represents a combination of Korean technology and Nepal’s workforce, adding that it would serve as a centre for industrial development. He said that the project would help strengthen economic cooperation between Korea and Nepal and contribute to the development of Chitwan.

He also noted that Nepal is entering a phase of political stability and economic opportunity, and said the company aims to support job creation and technology transfer in collaboration with the government.

The company recently issued an initial public offering (IPO), and said the funds raised are being utilised for the establishment of the uPVC plant. The estimated cost of the project is Rs. 560 million.

The company aims to complete construction within six months and begin production thereafter. It expects that domestic production of such materials will reduce dependence on imports.

SY Panel Nepal has been producing panel products in Ratnanagar since 2017 and plans to expand its industrial presence and network.

Published in The Rising Nepal daily on 16 April 2026.