Nepal targets exports worth 20 percent of GDP in two years, but experts call goal unrealistic
Summary
Nepal aims to increase exports to 20% of GDP within two years to reduce its trade deficit, but experts deem the target unrealistic due to structural challenges and unfavorable policies.
Key Points
- Nepal's updated national trade strategy sets a target to raise exports to 20 percent of GDP within two years.
- Exports currently account for 8.7 percent of GDP, largely boosted by re-exports of edible oils.
- Experts and exporters consider the 20 percent export target highly improbable due to policy challenges and lack of production incentives.
- Rising production costs, VAT on raw materials, and suspension of export incentives have hindered export growth.
