A a report by Nepal Rastra Bank (NRB), Nepal’s reveals exports have dipped by 4.8 percent to Rs 77.83 billion in the first 11 months of the last fiscal. A year ago, in the same period, the country had exported goods worth Rs 81.73 billion. Nepal’s imports growth has slowed down, especially after the recent earthquake. However, imports were 11 times higher than exports.
The government is trying to keep its export target unchanged in the 12th and 13th three-year plans at Rs 100 billion. The 13th plan had targeted to maintain trade deficit at 20 per cent of the gross domestic product (GDP). Yet, according to the Commerce Ministry, it stood at 32 per cent during the last fiscal year. The situation shows no sign s of improving even now.
Purusottam Ojha, Former Commerce Secretary, stated lack of necessary infrastructure such as energy and roads and labour-related issues that increase the cost of production, and make Nepali products uncompetitive, was the biggest hurdle to growth. Besides, the government also does not have a comprehensive export promotion strategy, he added.
Moreover, the transportation costs for Nepal are also higher compared to other South Asian countries, being a landlocked country. Exporters, too are disappointed with the budget for this fiscal, as they feel there were no specific measures to address dip in exports.
Ashok Kumar Agrawal, General Secretary of the Garment Association of Nepal (GAN) said that they had demanded that the government treat export sector like agriculture and offer similar incentives, but there were no such measures introduced in the budget, which was a disappointment.
