Friday, July 3, 2026

ADB approves loan for customs modernisation in Nepal

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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