Polyester Yarn & Thread Exports Rise 22.5%: Nepal’s Textile Sector Gains Momentum

Published on September 27, 2025

Nepal’s textile sector gained renewed strength in FY 2025/26, with polyester yarn and thread exports increasing by 22.5 percent. Total exports reached Rs. 1.08 billion in just one month, up from Rs. 886 million in the same period of the previous year. This makes polyester yarn and thread the second-largest export commodity, contributing 4.5 percent to total exports after soybean oil.

The growth highlights rising demand from India and other regional markets, as polyester-based fabrics are increasingly used in garments, industrial textiles, and blended products. Unlike traditional exports such as woolen carpets (-26.6%) and tea (-30.9%), which struggled in 2025/26, the performance of polyester yarn shows how Nepal’s textile industry is shifting towards synthetic fibers and modern apparel inputs.

This momentum indicates that Nepal is slowly diversifying its export base within the textile sector. However, sustaining this growth will require investments in modern machinery, quality standards, and trade facilitation, as well as strategies to expand beyond India. If managed well, polyester yarn and thread could emerge as a long-term growth driver for Nepal’s industrial exports.

Loan Restructuring for Gen Z Movement-Affected Businesses

The NRB has announced targeted loan restructuring and rescheduling measures for businesses and borrowers directly impacted by the Gen Z Movement and trade disruptions. Relief measures include restructuring by Poush 2082, concessional interest rates (base +0.5%), higher LTV for vehicles, subsidized salary loans, and export-linked incentives. These initiatives aim to revive businesses, protect jobs, and stabilize Nepal’s economy.