ADB Approves $50 Million USD Loan to Nepal

via News Business Age 

The Asian Development Bank (ADB) announced on Thursday that it has approved a $50 million USD loan to support Nepal in enhancing its domestic and international trade. In the fiscal year 2022, trade and industry accounted for 14.1% of Nepal's gross domestic product (GDP), according to the Manila-based bank.

The ADB stated that the Nepalese government is actively working to increase the trade sector's contribution to GDP by enhancing the trade and export promotion environment and strengthening the supply chain for primary products. Key focus areas include improving customs and logistics systems and services, such as efficient transport, transit arrangements, and border procedures.

As part of the program, the ADB aims to implement the ongoing Customs Reform and Modernization Plan by introducing digital technologies to streamline customs processes. This includes electronic payment of customs duties and fees, as well as electronic submission of export documents. Additionally, an online customs valuation database will be established, and efforts will be made to reduce export documentation to facilitate smoother customs clearance procedures.

The program will extend Nepal's trade facilitation initiatives to the logistics sector, promoting more efficient movement of goods among producers, distributors, sellers, and buyers. Supported activities include the integration of logistics infrastructure to facilitate multimodal transport and last-mile connectivity, along with the establishment of a comprehensive logistics information portal.

ADB South Asia Department's Director of Regional Cooperation and Operations Coordination, Thiam Hee Ng, emphasized that the development of the trade and industry sector will enhance competitiveness and drive sustainable economic growth in Nepal. He further noted that improved trade facilitation can boost exports and contribute to addressing Nepal's balance of payments challenges.