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