June 30: The Asian Development Bank (ADB) has pledged to provide loan assistance of US$ 50 million (about Rs 6.6 billion) to Nepal. ADB approved this loan to improve the policy problems of Nepal's domestic and international trade.

According to the ADB, the contribution of trade and industry to Nepal's gross domestic product (GDP) in 2022 is 14.1 percent. ADB said that the contribution of business to GDP in Nepal increased as the government improved the environment for trade and export promotion and strengthened the supply of primary goods. However, it also mentioned that there is still a need for improvement in customs management, transportation, connectivity and other aspects of trade.

As per the ADB, the development of trade and industry sector will increase competitiveness. Thiam Hee Ng, director of Regional Cooperation and Operations Coordination of ADB South Asia Department, said that this will help the country to move towards sustainable economic development. He also said that the improved trade facilitation will help in export promotion and Nepal's foreign exchange balance.

ADB expects that the utilization of the loan will help in the electronic payment of customs fees and charges. It is also expected to improve and modernize the customs process through digital technology, and implementation of other plans.