Gold Imports Up 115% as Nepali Traders Boost Bullion Demand – NRB Macroeconomic Update

Nepal’s demand for gold has surged sharply in the early months of FY 2025/26, with imports of the precious metal rising by 114.7%, according to the latest Nepal Rastra Bank (NRB) Mid-September 2025/26 Macroeconomic Update. The country imported Rs. 3.42 billion worth of gold during the first two months of the fiscal year — more than double the Rs. 1.59 billion imported during the same period last year — reflecting a strong rebound in jewelry trade and festive consumption.

The NRB data shows that gold now accounts for 1.1% of Nepal’s total imports, ranking among the top 20 imported commodities. The sharp increase is attributed to seasonal demand ahead of Nepal’s major festivals, including Dashain and Tihar, as well as heightened investment in bullion by traders and households seeking to hedge against inflation and currency volatility. The fall in global gold prices during August and September 2025 also encouraged traders to increase stock levels, anticipating future price appreciation.

Experts note that the surge in imports was also driven by the reopening of jewelry markets and a recovery in remittance inflows, which boosted disposable income among Nepali households. Jewelers across Kathmandu, Biratnagar, and Pokhara reported strong pre-festival sales, while bullion traders imported additional quantities to meet rising retail and wholesale demand.

In the broader trade context, Nepal’s total imports reached Rs. 305.15 billion, up 16.2% year-on-year, with other key import items including petroleum products (Rs. 39.57 billion, +2.2%), chemical fertilizers (+68.1%), and transport equipment (+31.7%). The rise in gold imports reflects improving consumer confidence and a revival in the luxury goods market, signaling growing liquidity in the domestic economy.

However, economists caution that rising gold imports could exert pressure on Nepal’s foreign exchange reserves, despite their current strength at Rs. 2.88 trillion (USD 20.41 billion). They advise close monitoring of bullion imports to ensure macroeconomic stability and to discourage excessive speculative trading.