Trade Policy of Nepal

The trade policy of Nepal envisaged enhancing the contributions of trade sector to national economy by promoting internal and international trade with the increased participation of private sector through the creation of an open and liberal atmosphere. It further states to diversify trade by identifying, developing and producing new exportable products through the promotion of backward linkages for making export trade competitive and sustainable. In order to materialize following basic policies have been formulated(Shresth,2003).

i. The role of public sector will be minimized and used as a catalyst to expand the
role of private sector in trade.

ii. Improve balance of payments position by promoting exports to increase foreign
exchange earnings as well as by fulfilling internal demand of economic and
quality products.
iii. Production of quality goods and services for internal consumption as well as for
exports through effective and appropriate utilization of economic resources.
iv. Modernizing management and technology, on promoting market and on attracting
direct foreign investment in order to identify and develop new products as well as
raise the production and quality of the traditional products.
v. Public sector trading corporations will gradually be privatized taking into
considerations the development and efficiency of the private sector