The exports of Nepal’s readymade garments (RMG), woolen carpets and Pashmina recorded double-digit growths during the first quarter of the current fiscal year that began on July 16, owing to the depreciation of Nepali currency against US dollar.
The Nepali currency value on July 16 was Np Rs 95.012 for one US dollar, which was quoted on November 30, 2013 at Np Rs 100.044 for one US dollar.
According to statistics from Nepal Rastra Bank (NRB), exports of readymade garments surged 31.2 percent year-on-year to Rs 1.9 billion during the first three months of the current fiscal year, exports of woolen carpets rose 24.5 percent year-on-year to Rs 2.16 billion and exports of Pashmina jumped 47.1 percent to Rs 720.4 million during the same period, reports the Kathmandu Post.
The depreciation of the domestic currency against the US dollar has been attributed as the main reason for the increase in exports of these products, in addition to increasing orders from European countries and newly emerging destinations like China, UAE and Canada.
During the financial year that ended on July 15, 2013, Nepal exported garments worth around Rs 4 billion, carpets worth Rs 6.075 billion, and Pashmina products worth Rs. 2.07 billion, according to the NRB data.
In October 2013, the Government of Nepal submitted a list of 100 new products including garments and Pashmina, to the US, as proposed items for inclusion in the Generalized System of Preferences (GSP) facility. The inclusion of these products in the revised GSP would help them to qualify for preferential access to the US market, which until last fiscal year was the main export destination of these products.