PROBLEMS and PROspectS
In nepal’s
trade sector
Presented By:
Siddhartha Tamrakar
207109
1. Trade
Sector
Table of 2. Problems
Contents
3. Prospects
4.
Conclusion
Trade sector
● As per the Law Insider, comprises of:
○ Trading Businesses
○ Marketing Services
○ Export Promotions
○ Development of Trade related Law
Trade sector
● Adopted Liberal Trade Policy in 1992
● Member of WTO in 2004
● Announced New Trade Policy in 2014
● Trade relation with more than 150 countries
Brief overview
Which do you think is heavier?
problems prospects
● More imports than exports (90.8% vs 9.2%, as
Current
of Nepal Trade Info Portal, 2022); Negative
balance of trade
scenario
● Major partners: india and china
● Inadequate infrastructure and trasnportation
facilities
● According to the World Bank's report "Doing
Business 2020", Nepal ranks 123rd out of 190
economies in terms of ease of doing business.
● Trade to gdp ratio of 43.91% as of 2021
Some Generic Problems in
Nepalese Trade Sector
01 Lack of Skilled Labor Force
02 Low Level of Advanced Technology
03 Difficult Geographical Accessibility
Limited Domestic Market and High
04 Import Duties
Some commonly known Problems in Nepalese
Trade Sector
01 Nepal is a landlocked nation
02 Political Instability and Corruption
03 Devaluation of Domestic Currency
Low Production and Lack of Resources
04
Some Problems make you scratch your head and
wonder whats going on…
Importing Open border
Resources already with India;
available in Nepal Underground
(Cooking Oil, Economy?
Sugar, etc.)
Lagging behind on newer
Nepal does not even
technologies and their
produce its top two
regulations; results in us
exports on its own
falling behind
(Soyabean oil and
competition-wise
Palm oil)
Any other
problems? 1. Weak Intellectual Property
Rights Provisions
2. Inconsistent application of
Laws and Regulations
3. Plummeting Forex Reserves
What else could be there?
Taking advantage of
Globalization
Align business
strategies and
processes with Specialize in most
available demanded items in
technology the world. Google
and Blue Cart says
its Clothing and
Identify low cost suppliers, Fashion Items
such as Alibaba
Add pressure on the
Government to
stabilize regulations,
especially for financial
sector. Can lead to
legalizing
cryptocurrency and
other concepts in
Nepal
Identify specialization
sectors of the country,
such as Agricultural
Products, Water Supply,
Forest Resources,
Textiles, Minerals and
Handicrafts. Look for
opportunities to
commercialize these
products more
Lets get familiar with
these new trends and
concepts
1. Dropshipping
2. Fulfillment by Amazon (FBA)
3. Youtube Automation
What else could be there?
(Always remember to conduct
proper
r research)
Also, let’s not forget1
Newer Opportunities in the
Market:
1) OBOR Strategy
2) Nijgadh Airport
3) MCC-Nepal Compact
Maybe even more
Fact on custom duty
Fact on custom duty
Companies exporting more than
90% of their goods are
exempted from custom duties,
excise duties and sales taxes.
- Government of Nepal
Source:
https://uk.nepalembassy.gov.np/tra
de-in-nepal/#:~:text=Nepal's%20m
ain%20trading%20partners%20ar
e,%2C%20machinery%20%26%2
0equipment%20and%20electronic
s
.
The best idea, in my
opinion?
Tourism!!!
So which is heavier?
problems prospects
currently
pect s
pr os
l ems
prob
But in the future?
prob
lems
pros
p ects
Time could be running out!!
References
● https://uk.nepalembassy.gov.np/trade-in-nepal/#:~:text=Nepal's%20main%20
trading%20partners%20are,%2C%20machinery%20%26%20equipment%20
and%20electronics
● https://www.lawinsider.com/dictionary/trade-sector#:~:text=Trade%20sector
%20narrowly%20means%20the,of%20the%20trade%2Drelated%20law
● World Bank, "Doing Business 2020: Comparing Business Regulation for
Domestic Firms in 190 Economies"
References
● https://de.nepalembassy.gov.np/trade-investment-opportunities-nepal/
● https://www.macrotrends.net/countries/NPL/nepal/trade-gdp-ratio
● https://www.nepalitimes.com/banner/nepal-doesnt-produce-its-2-biggest-exp
ort-items/#:~:text=Nepal%20cannot%20even%20produce%20enough,but%2
0the%20country%20exported%20Rs4
● https://www.nepjol.info/index.php/sijssr/article/download/26917/22279/80422
References
● https://www.newbusinessage.com/MagazineArticles/view/3197#:~:text=The
%20issue%20of%20intellectual%20property,considered%20weak%20with%
20little%20enforcement
● https://np.usembassy.gov/mcc-in-nepal-top-ten-facts/#:~:text=The%20MCC
%2DNepal%20Compact%20aims,economic%20growth%2C%20and%20red
uce%20poverty
● https://www.wto.org/english/forums_e/public_forum17_e/s36_Anton_Said.p
