The Asian Development Bank (ADB) has approved a US$50 million loan to support the implementation of policy reforms by the Nepalese government to help improve domestic and international trade.
In fiscal year 2022, trade and industry contributed 14.1% to Nepal’s gross domestic product (GDP). The government is pushing to increase trade’s contribution to GDP by improving the trade and export promotion environment and strengthening the supply chain of primary products. Essential for this is the improvement of customs and logistics systems and services such as efficient transport, transit regulations and border procedures.
“The development of the commercial and industrial sector will increase competitiveness and help steer the country towards sustainable economic growth,” said Thiam Hee Ng, director of regional cooperation and operations coordination of ADB’s South Asia Department. “Additionally, improved trade facilitation can boost exports and help improve Nepal’s balance of payments.”
The program will contribute to the implementation of the current customs reform and modernization plan by improving customs processes through the introduction of digital technologies, such as B. the electronic payment of duties and fees as well as the electronic filing of export documents. It will set up online customs assessment database and reduce export documentation to facilitate customs clearance.
The ADB program will extend government trade facilitation efforts to the logistics sector to encourage more efficient movement of goods between producers, traders, sellers and buyers. Supported activities include the integration of logistics infrastructure to facilitate multimodal transport and last-mile connectivity, and the establishment of a central logistics information portal. The program will introduce and harmonize technical standards for logistics infrastructure and equipment to facilitate trade with the country’s key economic partners such as India and Bangladesh.
ADB is committed to a prosperous, inclusive, resilient and sustainable Asia and the Pacific while continuing efforts to eradicate extreme poverty. The association, founded in 1966, has 68 members, 49 of them from the region.