KATHMANDU: The Asian Development Bank (ADB) has approved USD 50 million policy-based loan dedicated to modernizing Nepal’s customs administration, promoting trade, and driving job creation.

According to an official press release issued by the bank, this financial assistance is being provided under the ‘South Asia Subregional Economic Cooperation Customs and Logistics Reform Program.’

The initiative specifically aims to upgrade existing customs procedures while simultaneously enhancing the overall capacity of the country’s logistics framework.

To achieve these goals, the program focuses on implementing risk-based inspection systems, simplifying customs processes, developing adequate infrastructure, introducing regulatory reforms, and strengthening coordination among relevant government agencies.

The ADB anticipates that these targeted reforms will significantly reduce trade costs, make cross-border trade faster, more predictable, and highly efficient, and ultimately improve the agility of the entire supply chain.

Arnaud Cauchois, the ADB Country Director for Nepal, emphasized that efficient customs and logistics operations are indispensable for the nation’s economic transformation and its integration into regional markets.

He noted that by making cross-border trade smoother, more cost-effective, and highly reliable, the program will strengthen the domestic business environment, boost competitiveness, attract foreign investment, and contribute to the generation of quality jobs.

Furthermore, the ADB expressed confidence that this program aligns with the priorities of Nepal’s 16th Plan, playing a pivotal role in promoting private sector-led economic growth and diversifying the national economy.