KATHMANDU, April 14: The government has approved an action plan for reduction of trade deficit that was shelved for a long time.
The Council of Ministers meeting held on April 11 decided to approve the action plan for reducing the trade deficit.
The government, which claims that it will reduce the trade deficit by exporting internal resources, neglected the 'National Action Plan on Reduction of Trade Deficit-2075 BS' made two years ago. With the decision of the Council of Ministers, the trade deficit reduction action plan will now be implemented.
Nepal's Trade Deficit Decline: Still a Long Way to Go
The government started making the trade deficit reduction action plan in 2075 BS. The action plan was prepared by assigning the responsibilities of various ministries from import control to export promotion.
After the trade deficit reached a historic high, the government planned to move ahead with an action plan to control it. In the action plan, there are plans to impose quantitative restrictions on the import of goods that are imported in the country, identification of essential goods and their import management and export promotion.
The government approved the action plan prepared accordingly. The action plan includes the exploration of mining and minerals with the aim of increasing the excavation of precious stones, coal, copper, iron, limestone, etc.
The action plan focuses on increasing domestic production, substitution of import and export subsidies, identifying exportable items and creating an export environment.
In the Nepal Trade Integration Strategy (NTIS) prepared in 2073 BS, the government has prioritized the export of goods such as cardamom, ginger, medicinal herbs, clothes, leather, shoes, carpets, pashmina, and information technology products.
The strategy lists electricity, coffee, fruits, vegetables, honey, noodles, woolen products and jewelry as potential export items. Some of these items are already being exported to other countries.
