Zinc Sheet Exports Plunge 69.4%: Metal Sector Faces Sharp Decline

Published on September 27, 2025

Nepal’s metal export industry faced a severe setback in FY 2025/26 as zinc sheet exports collapsed by 69.4 percent. Earnings fell to just Rs. 226.3 million in one month, compared to Rs. 740.6 million in the same period last year. Once a major contributor with exports above Rs. 11.8 billion annually in earlier years, zinc sheets now account for less than 1 percent of total exports.

The decline reflects weak international demand, rising production costs, and increased competition from cheaper suppliers abroad. Additionally, Nepal’s dependence on imported raw materials for zinc sheet production has made it vulnerable to global price volatility. This downturn contrasts sharply with the surge in agricultural-based exports such as soybean oil (+44.7% share) and palm oil (+675%), showing the divergence between traditional industrial exports and commodity-driven growth.

The slump raises concerns about Nepal’s industrial export competitiveness. Without modernization, technological investment, and cost-efficiency measures, the metal sector risks further decline, reducing Nepal’s ability to diversify its trade portfolio.

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.