Nepal Unveils Service Trade Strategy to Reduce Growing Trade Deficit

Nepal’s Ministry of Industry, Commerce, and Supplies has unveiled a new national integrated strategy for service trade, prioritizing six key sectors to help reduce the country’s growing trade deficit.

The strategy, titled ‘National Integrated Strategy for Service Trade 2083’, aims to promote service trade in areas such as tourism, information and communication technology, financial services, construction services, energy services, education, and health services.

According to the ministry, the service sector’s contribution to Nepal’s economy has been increasing steadily, with the sector accounting for 62% of the country’s GDP. The ministry also noted that the service sector’s share in foreign trade has reached 21.44%.

The strategy aims to increase foreign exchange earnings, create jobs, promote investment, and diversify the economy through service trade. The government plans to create a favorable business environment, simplify policies and regulations, and promote digital trade to achieve these goals.

The strategy also outlines specific plans for the development of various service sectors, including tourism, information and communication technology, financial services, and construction services.

In the tourism sector, the government plans to promote high-quality infrastructure development, encourage private sector participation, and promote digital marketing and branding to establish Nepal as an international tourist destination.

In the information and communication technology sector, the government plans to promote the use of technology in governance, simplify business processes, and promote software production and export.

In the financial services sector, the government plans to promote cross-border financial services, develop digital payment systems, and promote remittance-based financial services.

The strategy also aims to promote international banking, insurance, and reinsurance services, and provide regulatory support to Nepali fintech companies to enter the international market.