Removing export barriers could more than double Nepal's exports in five years, study says

A study shows that Nepal's exports of goods and services could grow by up to 112 percent in five years if the main barriers to exports are removed. The Asian Development Bank, the Nepal Economic Journalists' Association and South Asia Watch on Trade, Economics and Environment (SAWTEE) released the report on Tuesday.

According to the study, expensive credit, taxes on imported raw materials, weak logistics infrastructure and high transport costs have put Nepali goods behind in international markets. The study notes that services exports have overtaken goods exports since 2013. In 2024, goods exports accounted for about 3.2 percent of gross domestic product (GDP) and services exports for about 4.4 percent, the report shows. The report identifies information technology and related sectors as areas with high potential.

The report was prepared by SAWTEE's Paras Kharel, Kshitij Dahal and Diksha Singh, and uses data up to August 31, 2025.

Finance Secretary Dr. Ghanashyam Upadhyaya said Nepal must move away from a development model based on remittances. He said adequate foreign exchange reserves, rising remittances and inflation below 6 percent have kept the country's external economic situation comfortable. He said export growth should move forward together with private investment and government policy support.