Nepal’s exports could double if constraints remov

By A Staff Reporter, Kathmandu, Oct. 7: Nepal’s goods and services exports could increase by up to 112 per cent over five years if major constraints facing export sector and exporters are addressed, according to a new study.

The study titled Constraints and Enablers of Nepal’s Exports of Goods and Services, jointly released by the Asian Development Bank (ADB), Society of Economic Journalists Nepal (SEJON) and South Asia Watch on Trade, Economics and Environment (SAWTEE) on Tuesday, said Nepal needs to adopt a new growth model based on competitive businesses, exports and private investment.

The study shows that high borrowing costs have increased the cost of Nepali products. Taxes on imported raw materials and other inputs required for production have also made it difficult for Nepali products to compete in international markets. Weak logistics infrastructure and high transportation costs are also major barriers to exports, according to the study.

The report, however, noted that Nepal’s diaspora, duty-free market access, trade fairs, digitalisation and Nepal’s positive image abroad have helped exporters access foreign markets. It also highlighted growing hotel capacity, religious tourism and emerging activities as opportunities for expanding services exports.

It supports the preparation of ADB’s Country Partnership Strategy for Nepal (2025–2029) and the search for a new growth model. The report uses data and information available up to 31 August 2025. Speaking at the event, Finance Secretary Dr. Ghanshyam Upadhyay said that Nepal needs to make its export growth sustainable while boosting private-sector confidence and accelerating government capital expenditure to strengthen the economy.