PM Shah vows support to promote export business

 Kathmandu, July 24

Prime Minister Balendra Shah has reaffirmed the government's commitment to addressing the concerns of entrepreneurs and businesses in order to expand the international market for Nepali products.

In a meeting with the representatives from the export related business associations held at the Prime Ministsr's Office on Friday, he pledged to take initiatives to facilitate trade with the USA, promote sheep farming in Karnali and Sudurpaschim provinces and address issues in dog chew industry.

Representatives of the Nepal Plywood Manufacturers' Association (NPMA), Nepal Carpet Manufacturers and Exporters' Association (NCMEA), Nepal Pashmina Industries Association (NPIA), and the Nepal Dog Chew Manufacturers' Association (NDCMA) were invited by the prime minister to discuss their challenges and solutions to them.

During the nearly two-hour meeting, Balaram Gurung, President of the NCMEA, said that although the United States and Europe remain the principal markets for Nepali carpets, new US regulations have created significant export difficulties, leaving exporters adversely affected.

He updated the PM that the USA has made certification by the Consumer Product Safety Commission (CPSC) mandatory from July 9. However, exports have been disrupted because Nepal lacks the required certification facilities, while the laboratory of the Nepal Bureau of Standards & Metrology was destroyed during the Gen Z movement.

"So, until an alternative arrangement is in place, the Ministry of Foreign Affairs (MoFA) send a diplomatic note to the US customs authorities seeking a one-year grace period for the testing requirement," Said Gurung.

Prime Minister Shah immediately instructed the ministry to take the necessary steps to implement the request, his secretariat informed in a statement.

Gurung also urged PM Shah to ensure the timely issuance of quarantine certification for imported wool used as raw material in carpet production. He explained that certification is currently carried out only three times a month, creating difficulties for businesses.

In response, the prime minister instructed the concerned authorities to increase the frequency of quarantine certification to two days a week. He also responded positively to the establishment of a Carpet Development Board under the Ministry of Industry, Commerce and Supplies, as suggested by Gurung. In addition, he said the government would promote sheep farming in Karnali and Sudurpashchim Provinces to increase the production of both meat and wool.

Similarly, Hom Prasad Ghimire, President of the NPMA, said that although Nepali plywood is of higher quality than imported alternatives, entrepreneurs in the sector continue to face difficulties due to existing legal provisions.

According to him, Nepal's 85 plywood factories have invested around Rs 40 billion, yet veneer, the principal raw material for plywood production, is being exported to India from Nepal at very low customs duty rates.

Prime Minister Shah said the government is working to raise customs duties on veneer exports in order to discourage the export of raw materials.

Likewise, Dhan Prasad Lamichhane, President of the NPIA, said that despite the abundance of grazing land in the Himalayan region, provisions of the Forest Act have made sheep farming in these areas difficult.

According to the statement, Prime Minister Shah assured him that the government would hold the necessary consultations and amend the legislation where required. He also expressed government's readiness in establishing collection centres for wool and other natural fibres required for pashmina production at the local level, together with processing centres at the provincial level.

Similarly, Resham Bahadur Pokharel, President of the NDCMA, said that some legal obstacles have prevented the industry from achieving its desired level of production and exports. He said that dog chews should be classified as a pet food industry rather than a dairy product and that such industries should be allowed easier access to imports of skimmed milk powder.

Prime Minister Shah said the government would study the proposal and address the issue if it is found to be appropriate.

Published in The Rising Nepal daily on 25 July 2026.