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Nepal garment delegation seeks incentives to boost exports

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Nepali apparel manufacturers have sought incentives from the government to boost their exports. In a meeting with Finance Minister Krishna Bahadur Mahara, a delegation of Garment Association Nepal (GAN) — an umbrella body of readymade garment producers and exporters — said that they will expand their export base by three-fold within three years if the government extends some facilities as they have requested.

Submitting a memorandum to the finance minister, GAN asked for the expansion of the refinancing period for export-oriented industries, a 10 per cent export incentive, an end to strikes and bandhs, as well as the introduction of hire and fire provision in the Labour Act to boost exports.

“High transportation cost, lack of adequate power supply, strikes, high wage of labours are considered as the major hindrances for competitiveness of the local garment manufacturers,” the GAN delegation told the finance minister.

According to them, Nepali products are around 15 per cent more expensive in the global market compared with products made by leading exporters like Bangladesh and Cambodia.