TRADE TRANSPORT

COMMUNICATION

GROUP:
Erica Niraula
Pooja Sharma
Karishma Chaudhary
Sanjal Joshi
COMPONENTS

Trade

Transport

Communication

SWOT
TRADE
• Trade covers domestic wholesale and retail commodity trade.
Consists :
1. Agricultural commodities
2. Domestically manufactured commodities and imported commodities
3. Import , export - Trading relation:
 India
 China
 More 100 countries
NEPAL GDP FROM WHOLESALE AND RETAIL
TRADE

• GDP From Services in Nepal increased to 131079 NPR Million in 2018 from
118204 NPR Million in 2017. GDP From Services in Nepal averaged
81820.42 NPR Million from 2000 until 2018, reaching an all time high of
131079 NPR Million in 2018 and a record low of 61837 NPR Million in
2001.
HISTORICAL
GROWTH OF TRADE
1. Agricultural sector : Source- Agriculture- federation 0f Nepalese chambers
commerce and indutry
• Nepal offers a huge possibility of turning agriculture into commercial venture.
• About 30% of Nepal's total land is used for agricultural purposes.
• 36% of GDP and absorbs about two-thirds of the labour market.
• The production index in Nepal increased from 100 to 134 in 2011.
• The major cash crops are oilseed, potato, tobacco, sugarcane, jute, cotton, and rubber;
and the major cereal crops are paddy, maize, millet, wheat, barley, and buckwheat.
Cardamom, ginger, garlic, turmeric, silk cocoons, honey and mushroom are also
cultivated in copious amounts.
• The sector has seen NPR 3.37 billion (USD 338 million) in foreign investment in
about 180 agriculture projects, which employ over 7,500 people.
• food and live animals comprise over 90% of total agricultural exports to
India.
• The government is currently focusing on the modernisation, diversification,
commercialisation and marketing of the agriculture sector.
DOMESTICALLY MANUFACTURED COMMODITIES

• Trade in domestically manufactured commodities has been growing.

• Some of the famous domestic manufacturing industries:
1. Saptakoshi Jal Udyog= processed drinking water
2. Ocean Plastic Industries= Box Packaging strap, Plastic sutli
3. Garment company = all kind of garment production and export all over
world.
4. Panchakanya Group =some of them are steel, plastic, ready mix concrete,
SS Tank
NEPAL INDUSTRIAL PRODUCTION INDEX GROWTH
2016 - 2018 | QUARTERLY | % | CEIC DATA
• The production index increased from 100 in 2004 to 112 in 2013.
• Foods, chemical, iron, and steel, dairy and beverages have experienced high
rates of growth. All domestically manufactured commodities are traded.
• Nepal's Industrial production rose 7.9 % YoY in Jul 2018
• an average rate of 12.2 %
• The data reached an all-time high of 27.5 % in Jan 2017 and a record low of
5.9 % in Apr 2018
• Industrial Production Index covers Manufacturing sector only. Industrial Production
Index is in quarterly frequency, ending in April, July, October, January of each year.
IMPORT IN NEPAL

• Import trade in commodities have grown at a very high rate.

• Nepal mainly imports oil, gold, iron and steel, clothes, pharmaceutical
products, cement, electronic appliances, food and vehicles.
• Nepal’s main imports partner is India (accounting for 58 percent of all
imports). Others include China, Indonesia, Argentina, South Korea,
Malaysia, Japan and Germany. 
IMPORT IN NEPAL : SOURCE- HIMALAYAN
TIMES, (MAY30, 2019)

• Between 2004 and 2012, the import trade increased almost three fold.
• On 2019 May 30, Government raised tax on imported goods
To promote local industries
The budget has increased custom tax on imported goods like; chicken by 3
times 10% to 30%, milk products 40%, 15% custom tax levied on dry
coconuts, cashews and peas, 40 % on imported tea and coffee, 40 % on import
of sugar or sugar products.
• 40 % Custom tax levied on chocolates, cocoa powder, pasta, macaroni,
noodles, crispy bread, biscuits, fruit juice and potato chips.
• Excise duty on mobile phone has been set at 2.5 %.
• Government has announced to provide 50% exemption on transportation
vehicles imported by agricultural cooperative.
• Government will only levy 1% custom charge on machinery, spare parts for
garment industry.
IMPORT IN NEPAL: TRADING ECONOMICS/
NRB

• Imports in Nepal decreased to 116940.90 Million NPR in December from

123238.80 Million NPR in November of 2018. Imports in Nepal averaged
40022.89 Million NPR from 2001 until 2018, reaching an all time high of
141240.60 Million NPR in September of 2018 and a record low of 8000.30
Million NPR in October of 2001.
IMPORT IN NEPAL: SOURCE- TRADING
ECONOMIES

• Imports in Nepal is expected to be 98600.00 Million NPR by the end of this

quarter, according to Trading Economics global macro models and analysts
expectations. Looking forward, we estimate Imports in Nepal to stand at
99100.00 in 12 months time. In the long-term, the Nepal Imports is projected
to trend around 101000.00 Million NPR in 2020, according to our
econometric models.
 The following product groups represent the highest dollar
value in Nepal’s import purchases during 2017. : Source-
www.woldstopexports.com

• Mineral fuels including oil: US$1.5 billion (15.2% of total imports)

• Iron, steel: $947.8 million (9.4%)
• Machinery including computers: $913.5 million (9.1%)
• Vehicles: $713.9 million (7.1%)
• Electrical machinery, equipment: $657.6 million (6.6%)
• Cereals: $409.8 million (4.1%)
• Gems, precious metals: $369.7 million (3.7%)
• Plastics, plastic articles: $367.2 million (3.7%)
• Salt, sulphur, stone, cement: $317.9 million (3.2%)
• Animal/vegetable fats, oils, waxes: $297.9 million (3%)
EXPORT IN NEPAL

• Nepal mainly exports carpets, beverage, textile, tea and plastic.

• Its main export partners include India, the US, Bangladesh and Germany.
Nepal mainly imports fuel, apparel, gold, iron and steel, machinery and
equipment. 
EXPORT TO INDIA; SOURCE: HIMALAYAN
TIMES 2018 , NRB
• The country’s export to India slowed to a crawl in the first five months (mid-July
to mid-December) of this fiscal as major export items recorded negative growth
in the review period.
• As per the central bank’s report, exports to India stood at 53.3 per cent of total
exports in first five months of this fiscal against 55.6 per cent in corresponding
period of previous fiscal.
• The country exported goods worth Rs 17.96 billion to India in the review period
• Export of major export items like juice, cardamom, plastic utensils, GI pipes,
among others, plunged heavily after the integrated GST( goods and service;
tax) increased the tariff to export to India.
• Export of cardamom plummeted by 68.4 per cent to Rs 393.5 million in the
first five months of this fiscal compared to the corresponding period of the
previous fiscal.
• The country had exported cardamom worth Rs 1.25 billion in the first five
months of last fiscal 2016-17.
• Commerce Secretary Chandra Kumar Ghimire said that exporters need to
diversify the market of their products to minimise the risk of market
concentration
 EXPORTS TO CHINA: THE KATHMANDU POST/NRB
2018

•Jun 11, 2018-Exports to China nearly doubled in the first 10 months of the current fiscal year, as
the profile of Nepali products rose due to increased participation in China’s trade fairs.
•Nepal secured export earnings of Rs2.66 billion, up from Rs1.42 billion, according to Nepal
Rastra Bank (NRB) statistics.
•Over the period, earnings from wheat flour, tea, noodles, pashmina, woolen carpets and
handicraft items surged dramatically. 
•Suyash Khanal, director at Trade and Export Promotion Centre (TEPC), said demand for Nepali
products of late has been increasing from China
•China provides duty-free, quota-free market access to 8,030 Nepali goods.
• As per the TEPC, most of Nepal’s exportable goods qualify for preferential treatment in China.
• According to the government record, Nepal’s exports to China reached an all-time high of Rs2.98 billion
in 2013-14. 
• However, exports went into freefall after Chinese authorities closed the Tatopani trade route following
April 2015 earthquake.
• Chinese traders have also been buying Nepali goods from the local market to sell them in China. 
• Around 25 percent of Nepal’s total trade with China is done through the Rasuwagadhi-Kerung overland
route.
•
According to Sheshkanta Gautam, executive director of the National Tea and Coffee Development Board,
a number of Chinese traders have been buying Nepali tea to re-export it to other countries including
Australia.
• Likewise, Buddha statues made out of metal and felt products among other Nepali
handicraft items are also among the favourite items of Chinese consumers, shows NRB
statistics.

• Meanwhile, Nepal imported goods worth Rs127.24 billion from China in the first 10
months of the current fiscal year, up 22.3 percent than in the same period a year ago.
• Telecommunications equipment, electronic goods, machineries, readymade garments,
chemical fertilisers, medical equipment and footwear are among the major imports from
China.
IMPORT EXPORT IN NEPAL FROM 1980-2017 ;
SOURCE: ATLAS.MEDIA.MIT.EDU
IMPOR
T:$9.6
billion

$8.75
Billion

EXPO
RT:
$804M
• The top exports of Nepal are Non-Retail Synthetic Staple Fibers Yarn
 ($80M), Knotted Carpets ($71.1M), Flavored Water ($45.9M), Fruit Juice
 ($45.4M) and Nutmeg ($42.8M), using the 1992 revision of the HS
(Harmonized System) classification.
• Its top imports are Refined Petroleum ($1.04B), Semi-Finished Iron
 ($447M), Planes, Helicopters, and/or Spacecraft ($330M), Gold ($246M)
and Large Construction Vehicles($233M).
EMPLOYMENT IN TRADE

• Agriculture provides employment opportunities to 66 percent of the total

population and contributes about 34.7 percent in the GDP. ( Economic
Survey: 069/70)
• Employment in industry (% of total employment) in Nepal was reported at
8.109 % in 2017, according to the World Bank collection of development
indicators, compiled from officially recognized sources.
EMPLOYMENT IN TRADE

• Employees are people who work for a public or private employer and receive
remuneration in wages, salary, commission, tips, piece rates, or pay in kind.
• Industry corresponds to divisions 2-5 (ISIC revision 2) or tabulation categories C-
F (ISIC revision 3) and includes mining and quarrying (including oil production),
manufacturing, construction, and public utilities (electricity, gas, and water).
• Trade is also a source of self employment.
• Creates employment for loading, unloading, clearing, and forwarding of goods.
EMPLOYMENT IN TRADE
• Every month, the working age population increases by 35,000 people and
Nepal must create 286,900 jobs a year to maintain its employment rate,” WB
said in its report.
• While WB projected Nepal’s GDP growth at 4.6 percent in 2018, “providing
opportunities to these young entrants while attracting more women into the
labor market, will require generating even more jobs for every point of
economic growth,” says Martin Rama, World Bank South Asia Region Chief
Economist 
• “Nepal has seen an economic recovery after disruptions from earthquakes
and a trade blockade, but growth is expected to slow from 7.5 percent in
fiscal year 2017 to 4.6 percent in 2018 due to the heaviest floods in decades
combined with slow recovery of exports, slowdown in remittances, and an
increase in lending rates,” the report added.
STATUS OF EMPLOYMENT IN NEPAL

• there has been a growing trend of inclination for foreign employment among

Nepali working age population, especially the youth, due to the lack of
employment opportunities locally.
• The first eight months of the current fiscal saw at least 1,026 migrants per
day to various overseas labor destinations.
PROBLEMS OF DOMESTIC TRADE:

• Lack of surplus
• Slow industrial growth
• Rugged topography
• Low quality products
• Changing government policies
 ECONOMIC CONTRIBUTION OF TRADE:

• Agriculture remains Nepal's principal economic activity, employing about

65% of the population and providing 31.7% of GDP.
• In the fiscal year 2000-2001, exports posted a greater increase (14%) than
imports (4.5%), helping bring the trade deficit down by 4% from the
previous year to $749 million.
• Strong export performance, including earnings from tourism, and external aid
have helped improve the overall balance of payments and increase
international reserves. 
TRANSPORT AND COMMUNICATION
SUBSECTOR
• Important service subsector in Nepal
• Its role is significant in the development of agriculture, manufacturing and
other services
• It is important for development purposes
TRANSPORT SERVICES
• It facilitates speedy and efficient movement of people and goods
• Enlarges markets and promotes new patterns of consumption
• Easy way of communicating with people
TRANSPORT SUBSECTORS IN NEPAL
CONSIST OF:-
• Land transport – roads, railways, ropeways and non mechanized transport
• Air transport – consist of airport and airlines operators
GROWTH OF TRANSPORT SERVICES :-
Roads:-
• The length of roads increased by more than five fold from before.
• It has built 25115 km of roads in which 11,565 km is dirt road, 6077 km is gravel
road and 7474 km is paved road. There were also 47 new bridges built in this
period.
• Transport Management showed that 1,180km of new roads were constructed in
Nepal in the 2017-2018fiscal year.
• The three, four-lane tunnels, measure 3,425m, 735m and 392m in length and total
4.5km. The longest stretch of tunnel is being built from Kulekhani to Bhimfedi, with
the 735m tunnel being constructed at Bhainse and the 392m tunnel being driven at
Chobar. 
Vehicle:-
• Nepal's Motor Vehicles Sales dropped 60.5 % in Dec 2017, compared with a
growth of 57.6 % in the previous year
• Kathmandu valley alone has more than half of vehicles used
Railways:-
• Nepal has one Janakpur Jaynagar narrow gauge railroad
• It is operational for transporting passengers and cargo
• A new railway line is constructed in Janakpur for the operational use
• It maintains and operates two railway lines in the country: the Raxaul–Sirsiya
 and the Jainagar–Janakpur. 
• Rails connecting the 34 kilometres (21 miles) between Janakpur in
southeastern Nepal and Jay Nagar.
Ropeways:-
• A ropeway from Kuringhat to Manakamana is spanning 3.1 km
• Ropeways is highly successful and used to private sector
• The Halchowk to Lainchaur ropeway was 4 km long and was used to carry
quarry stones to construct Rana palaces. Even the private sector has come
forward constructing the Manakamana Cable Car and Chandragiri Cable
Car. 
Air Transport:-
• New international airport is built at Bhairahawa and Pokhara
• Domestic and international both are equally used
• In the case of Pokhara, Nepal’s second city, the government has instructed
stakeholders there to ensure the new airport development project, three
kilometres east of the existing one, is completed by its 10-Jul-2021 deadline.
New Pokhara Airport will be equipped with a 2500m x 60m runway. The
builder is China CAMC Engineering Co and the cost is USD305 million
• Under the industrial infrastructure development, access to the cement
industries which are in operation, going on operation and under construction
transmission line and substation are being made through the Nepal Electricity
• Authority and the construction of road and road development through
Department of Road.
• Nepal Government has invested in purchasing the share of 14 cement
factories for the construction of 420 km road to have the access to the 31
mining locations in order to develop the transmission line and substations.
• Up to the first eight months of the current FY, 192 km of access road to the
mining location has been completed.
FOREIGN INVESTMENT IN NEPALESE
INDUSTRY
ECONOMIC CONTRIBUTION OF TRANSPORT INDUSTRY

• GDP From Transport in Nepal increased to 90039 NPR Million in 2018 from
85019 NPR Million in 2017.
• GDP From Transport in Nepal averaged 58575.75 NPR Million from 2001
until 2018, reaching an all time high of 90039 NPR Million in 2018 and a
record low of 34055 NPR Million in 2001.
PROBLEMS OF TRANSPORT INDUSTRY

• High cost
• Pollution
• Poor safety
• Poor institutional facilities
• Low sustainability
COMMUNICATION
Exchange of ideas, values, feeling action with other.
Means of communication
Postal service:
• It is traditional service operated by government.
• Established in 1879 AD.
• Service like delivery of letter, parcel, money order, express mail.
• Courier service is operated by private sector, delivers message, package, mail
with high speed, security and tracking service.
Telecommunication service
• It is available in most part of the part of the country.
• Established in 2016 BS.
• Service run by both private and public sector.
• Eg. Nepal telecom, Ncell, UTL etc.
Internet service
• It is the fastest means of communication.
• In 2018 78% of Nepalese people use internet.
• 16.67 million people are connected to the internet.
• It connected people from different place.
• In 2011 9.0% of Nepalese people use internet.
Radio television and newspaper.
• Effective medium in mass communication.
• It expand service in various parts of the country.
THE MAJOR OBJECTIVE OF BUDGET 2076 77
IN COMMUNICATION SERVICE

• Radio Nepal and NTV will be integrated

• Cyber security law will be made more strict
• Nepal's own satellite will be established
• Postal services will be upgraded
• Digital Nepal framework to be promoted and will be brought into operation
• In coming 5 years all government transactions will be digitized
SWOT ANALYSIS
1. STRENGTH:
Nepal is rich in bio diversity especially in medicinal herbs
Nepal has one of the largest untapped hydropower resource in the world
estimated 83000 MW of hydropower potential.
Tea and coffee of Nepal also have good market.
6th producer of lentils.
WEAKNESS
• Tax burden; tax evasion by more than 80%.
• High value (products) crops suitable for viable exports have not yet fully
identified except yarsha gumba.
• Although government emphasized on the commercialization of agriculture,
major political parties don’t subscribe to the proposals in favor of large or
estate farming.
• Poor physical connectivity – road
• Political instability
• Landlocked situation
• Poor infrastructure
OPPORTUNITIES :

• Agriculture
• Hydropower
• Biodiversity
• Globalization
THREATS
• Ranks 11th in the world in terms of vulnerability to earthquakes and climate
extremes such as drought and floods.
• Crisis of fertilizer every time , lack of proper guidance and training in
agricultural production.
• Poor industrial relation with rigid labor laws and tax regulation, continuos
strike and blockade.
• Scarce resource to fund mega projects resulting in poor contribution to
manufacturing sector.
THANK YOU