Is manufacturing really expensive in Nepal?

Nepal’s problem is not resources, but a government unwilling to expand revenue and a private sector content with imports.

Nepal’s trade statistics for the last fiscal year have recently been released. They show that the country imported goods worth Rs2.1 trillion in 2025-26 and exported Rs315 billion. For every rupee we sold to the world, we bought Rs6.65 from it. We recorded a trade deficit with 134 of the 162 countries we traded with, notably with most countries poorer than us. The usual explanation for this is that manufacturing is expensive in Nepal. But is that the only reason? Or are there other factors that make us a consumption nation?