Foundation stone laid for garment processing unit
Foundation stone for an upcoming garment processing unit under the Special Economic Zone Authority Programme of the Government of Nepal was laid by Prime Minister KP Sharma Oli recently.
The garment processing factory is being set up in south Nepal’s Bara District with an investment of around 10 billion Nepali Rupees. The unit will be spread over an area of more than 61.45 million square feet.
Despite being a member of the World Trade Organization ( WTO) and the South Asian Free Trade Area (Safta), which promises hassle-free crossborder movement of goods and services, Nepal still struggles to increase its exports.
The lack of product diversification is one such factor because of which Nepal witnessed a decline in export of readymade garments in recent years. The country reported a 9.9 per cent drop in export earnings to Rs. 5.3 billion in the previous fiscal, reveals the latest available report.
Despite being a member of the WTO and Safta, Nepal still struggles to increase its exports.
The country started reporting a decline in export of readymade garments to the US from 2003 after it revoked dutyfree, quota-free market access to Nepali products. The country used to be its largest buyer till 2000.
Later in 2016, the US evoked duty-free access to 77 tariff lines under the Trade Preference Programme for Nepal.
The Nepalese Government kicked off the construction of a Rs. 2.5 billion garment processing zone spread over 300 bighas in Bara to amplify readymade garment exports from the country, earlier this year.
Prime Minister of Nepal, KP Sharma Oli, inaugurated the garment unit