KATHMANDU, May 30: The government has unveiled a budget for the upcoming fiscal year that places industry, commerce, supply management, startups, and innovation at the center of its economic agenda. Through the fiscal year 2025/26 budget, Finance Minister Dr. Swarnim Wagle announced a series of initiatives aimed at boosting production, creating employment opportunities, and strengthening industrial competitiveness. The budget seeks to make domestic products more export-oriented, deepen cooperation with the private sector, and position startups as a key driver of economic transformation. A total allocation of Rs 8.31 billion has been made for the industry, commerce, and supply sectors.
To encourage productive industries, the government has prioritized labor-intensive sectors with export potential, including agro-processing, tourism services, and light manufacturing. It has announced the establishment of Employment-Linked Production Zones, designed to directly connect industrial output with job creation. The budget also proposes reforms to legal provisions related to corporate social responsibility in order to strengthen accountability among industrial enterprises.
As part of efforts to promote environmentally sustainable industrial development, the government plans to work with the private sector to introduce clean energy-based technologies and modern sewage systems with treatment facilities in industrial estates and corridors. These measures are intended to reduce industrial pollution while supporting greener growth.
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The budget also includes support for industries seeking to replace traditional boilers with electric or bio-briquette-based alternatives. Concessional loans will be made available to facilitate this transition, with a target of helping one hundred industries adopt cleaner technologies. Additional resources have been allocated for the development of industrial infrastructure as the government seeks to improve the overall business environment.
Special attention has also been given to the mining and mineral sector. Mining licenses will be reviewed, while geological laboratories and testing facilities required for exploration activities will be expanded. The government plans to improve electricity transmission and supply to mining areas, large industries, and industrial zones with high power consumption. Infrastructure supporting industrial and mining activities, including access roads used by heavy vehicles, will also receive funding.
To better regulate the extraction, production, supply, and use of minerals and construction materials, the government has announced plans to establish a Mining and Minerals Authority. It also intends to accelerate the process required for the commercial production of petroleum resources in Dailekh. In addition, the state’s ownership stake in the Dhaubadi Iron Industry will be reduced, allowing it to operate under a public-private partnership model. The budget further emphasizes the need to identify environmentally suitable locations for the extraction and processing of stone, gravel, and sand.
In the commerce and supply sector, export promotion and trade facilitation remain major priorities. The government plans to provide additional support to Nepali products that have already established a presence in international markets. A trade and industrial logistics master plan will be implemented to improve trade efficiency and investment facilitation. Measures aimed at increasing national productivity will also be introduced through production-based incentive programs.
The Integrated Check Post in Bhairahawa is expected to become operational soon, while the under-construction facility at Chandani-Dodhara is targeted for completion within two years. To expand exports, the government will implement product-specific export strategies covering goods such as carpets, yarn, ready-made garments, and cement. It will also study the feasibility of introducing a futures contract system to help stabilize fuel prices and encourage the installation of electric vehicle charging stations at fuel stations across the country.
The government has pledged to strengthen regulatory institutions to combat syndicates, cartels, black marketing, and unfair competition. Nepal Oil Corporation will also enter into agreements with ethanol producers to ensure purchases at predetermined prices, creating a more predictable market for domestic producers.
A major focus of the budget is startups and innovation. The government plans to establish the Nepal Enterprise Facility to connect startups and small and medium-sized enterprises with the national entrepreneurial ecosystem. The facility is expected to provide policy support, access to finance, incubation services, and entrepreneurship promotion under a single framework.
Young entrepreneurs interested in agriculture and livestock businesses will receive startup support, while special programs will be launched to provide research and innovation opportunities for young scientists within Nepal. The budget also includes plans to establish an observatory at Everest Base Camp to promote astronomical tourism. Significant funding has been allocated to science, technology, innovation, and the Nepal Enterprise Facility.
Industrial innovation has been identified as a cornerstone of economic transformation. Industrial zones such as Motipur and Mayurdhap will be developed and operated by the private sector, while women entrepreneurs will receive priority and easier access to credit in the Panchkhal Special Economic Zone. The government also plans to operate special economic zones under an integrated administrative model, enabling businesses to access tax, customs, trade, and investment-related services through a single system.
To improve industrial competitiveness, electricity demand charges will be reviewed and tariff discounts provided to productive industries. Businesses will be allowed to use structures built on leased industrial land as collateral for bank financing. Industries unable to operate at full capacity because of capital shortages will have access to business revival loans.
Overall, the budget aims to place industrial production, export growth, energy efficiency, innovation, and employment generation at the heart of Nepal’s economic development strategy. By expanding support for startups, strengthening industrial infrastructure, and encouraging private sector participation, the government hopes to make entrepreneurship and innovation central to the country’s long-term economic transformation.
