GAN blames government for decline in exports

The export of readymade garments from Nepal which amounted to around Rs 12 billion, has dropped to Rs 5 billion in a decade. The industry claims that the figures have declined as the government has not been reluctant to provide concessional loan, cash incentives and subsidies in the import of raw materials to garment manufacturers. Ashok Kumar Agrawal, General Secretary of the Garment Association of Nepal (GAN), said, “Garment industry has been paying ‘extra fine’ on bank guarantee to cover loss during the import of raw materials. They have been lobbying the government to remove the extra fine. We have informed about our problem to the Trade and Export Promotion Center, Ministry of Commerce and Supplies and even Finance Ministry but the authorities have turned a deaf ear,” adding that the country would bear heavy losses if the garment factories stop exporting their products.