Government positive to set up Handicraft Development Board

Kathmandu, July 22

The Federation of Handicraft Associations of Nepal (FHAN) has expressed their willingness to work closely with the government to promote, expand and preserve Nepal's handicraft industry.

In a meeting with Prime Minister Balendra Shah at the Prime Minister's Office on Wednesday, representatives of the FHAN said that they were encouraged by the government's commitment to prioritising the handicraft sector and affirmed their readiness to cooperate with the government in every possible way.

On the occasion, Prime Minister Shah said that the government remains committed to formulating policies for the handicraft sector, preserving traditional arts, creating employment opportunities and ensuring the transmission of handicraft skills to future generations.

He also responded positively to the federation's proposal to establish a Handicraft Development Board under a public-private partnership (PPP) model, the Prime Minister's Secretariat informed in a statement.

FHAN officials informed that the organisation has been observing Handicraft Day independently on Mangsir 28 each year and requested that it be recognised and celebrated as a national observance. Prime Minister Shah instructed his team to coordinate immediately with the Ministry of Home Affairs regarding the formal recognition and celebration of the day.

"PM Shah also assured the delegation that the government would consider replacing the current self-declaration system for handicraft exports with mandatory invoice-based valuation, in line with the federation's suggestion that such a measure would help increase government revenue," read the statement.

He further assured the representatives that the five per cent export incentive payable on handicraft exports, which has remained suspended for the past three years, would be reinstated.

Likewise, PM Shah responded positively about returning the SAARC Handicraft Development Centre building for its intended purpose. The building has already been constructed within the Department of Industry premises for the promotion and development of handicraft production but is currently occupied by the Office of the Company Registrar.

At the request from the FHAN for the same, he assured the delegation that appropriate action would be taken to utilise the building for its said purpose.

The Prime Minister also showed particular interest in establishing a Handicraft Village in the Kathmandu Valley and opening handicraft skills training centres in all seven provinces. In addition, the FHAN requested government support in facilitating an agreement with construction companies to incorporate artistic and traditional handicraft elements into infrastructure projects.

FHAN officials also presented a number of other proposals, including measures to preserve traditional craftsmanship and the introduction of identity cards for handicraft artisans.

The meeting was attended by FHAN president Rabindra Shakya, senior vice-president Rajman Bajracharya, vice-president Kiran Kumar Sthapit, adviser Bikash Ratna Dhakhwa, and leading handicraft exporter Maheshwar Shrestha.

Published in The Rising Nepal daily on 23 July 2026.