After a period of stagnation, Nepal’s construction industry is showing promising signs of revival. According to the National Statistics Office (NSO), the sector experienced a 9.1% growth in the second quarter of FY 2024/25, a significant rebound from the negative 0.3% in the preceding quarter. This resurgence is attributed to increased imports and local production of construction materials between mid-October and mid-January .​

The construction sector is pivotal to Nepal’s economy, contributing approximately 9.5% to the national GDP in recent years . However, challenges such as low capital expenditure and delayed project implementations have previously hindered its growth . The recent uptick suggests a positive shift, potentially driven by policy reforms and increased investment in infrastructure projects.​

To sustain this momentum, stakeholders emphasize the need for consistent government spending, streamlined procurement processes, and enhanced private sector participation. Addressing these areas could solidify the sector’s growth trajectory, ensuring long-term economic benefits for the nation.