Kathmandu, July 1
The Asian Development Bank (ADB) has
approved a US$50 million (Rs. 7.55 billion) policy-based loan to help Nepal
modernise its customs administration, boost trade, and support job creation.
The loan supports subprogramme II of the
South Asia Subregional Economic Cooperation (SASEC) Customs and Logistics
Reforms Program, building on earlier efforts to advance customs processes and
develop the logistics sector in the country, the ADB informed in a statement on
Wednesday.
According to the ADB, the programme will
modernise customs through digitalisation, risk-based inspections, and
streamlined procedures, while strengthening the logistics sector through better
infrastructure planning, regulatory frameworks, and coordination. "These
reforms will reduce trade costs, improve border predictability and supply chain
efficiency, and support more efficient movement of goods and deeper integration
into regional value chains," read the statement.
ADB Country Director for Nepal Arnaud
Cauchois said that by making cross-border trade faster, more predictable, and
cost-efficient, this programme will strengthen the business environment,
enhance competitiveness, attract investment, and support quality job creation.
Despite recent progress, Nepal’s trade
competitiveness remains constrained by complex customs procedures and an
underdeveloped logistics sector. High inspection rates, paper-based processes,
and fragmented supply chains have increased transaction costs and limited
export potential.
The multilateral donor said that the
programme addresses these challenges by promoting automation, enhancing service
standards, and encouraging private sector participation in logistics
development. By improving trade efficiency and reducing logistics costs, it is
expected to help expand exports, improve the reliability of cross-border trade,
and support higher private sector participation.
Published in The Rising Nepal daily on 2 July 2026.
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