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There are many places to shop in Pokhara. Most tourists never get past the many shops located in the town area of Lakeside if they are staying there. There are better prices and better handicrafts if you walk a little along Lakeside - right near the Kantipur Hotel and across from Fishtail Lodge Gate is a wonderful shop. It's called "Pokhara Cottage Emporium." Specialities at this shop are: pashmina shawls (great prices!), amazing wall hangings and handmade jewelry. If you don't see what you want, they will make it for you. They are open early and late for convenience of tourists. Worth your time if you like to shop or even if you don't like to shop and just need to bring home some gifts that your family and friends will love.
Pokhara now has a "Charity Shop" where you can buy high quality but cheap second hand goods. The shop is run by The Mountain Trust (a UK/ Nepalese NGO - www.mountain-trust.org) It collects clothes, books etc from travellers leaving Pokhara, then sells them in the shop. Most of the clothes come from Europe, so they are different from the usual "travellers clothes" that other shops sell. The paperback books are probably the cheapest in town at 50 rps. There is also the satisfaction of knowing the money you spend will be used for the benefit of the people in remote areas of Nepal, to improve health and education. The shop is in Barahi Chowk, near Moondance Restaurant and Hotel Barahi, Lakeside Pokhara.