Nepal’s paper and pulp industry is experiencing a period of transformation, marked by both industrial advancements and the preservation of traditional methods.
Industrial Developments
In March 2025, the IME Group inaugurated Nepal Pulp and Paper Industries in Ramnagar, Mahottari, with a ₹2 billion investment. This facility boasts a production capacity of 75 metric tons of high-quality paper daily, aimed at meeting domestic demand for writing and printing materials. The plant spans 20 bighas of land and has created approximately 300 jobs, benefiting local communities, including women and youth.
Market Dynamics
Imports: In 2022, Nepal imported paper and paperboard articles worth approximately $138.82 million.
Pulp Imports: The country’s demand for pulp has grown nearly 18% since 1997, with projections to reach 1,060 metric tons by 2026.
Exports: In 2021, Nepal exported 106 metric tons of pulp, marking a 24.3% decrease from the previous year.
Traditional Handmade Paper
Nepal has a rich tradition of handmade paper production, particularly in the Gandaki Province. This industry utilizes the bark of the lokta plant, harvested sustainably from community-managed forests. Handmade paper production is a labor-intensive process that provides employment opportunities, especially for women in rural areas. The industry is supported by fair trade practices and organizations like the Nepal Handmade Paper Association.
Challenges
Raw Material Shortage: The industry faces a shortage of raw hides, impacting production and export capabilities.
Import Dependence: Approximately 70% of the raw materials required for footwear production are imported.
Outlook
The paper and pulp industry in Nepal is poised for growth, driven by both industrial advancements and the preservation of traditional methods. With increased production capacities and a focus on reducing imports, the sector aims to meet domestic demand and explore export opportunities.
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