Foun­da­tion stone laid for gar­ment pro­cess­ing unit

Stitch World - - NEWS TRACK -

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.

Nepal:

Prime Min­is­ter of Nepal, KP Sharma Oli, in­au­gu­rated the gar­ment unit

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