Kathmandu, September 7:

Export of readymade garments has seen a continuous decline in recent times. Readymade garment export to US declined by 62 per cent in August in comparison to 26 per cent decline during the same month during the last fiscal year, states latest figures compiled by Handicraft Association of Nepal (HAN). However, during July, export to US was down by only 18 per cent despite a lack of seriousness by the government in lobbying for duty free access to the US despite repeated requests from the garment sector. The huge decline has effected not only employment, foreign currency earnings but the national economy.

Kiran Sakha, president of the Garment Association of Nepal (GAN) and chairman of foreign trade committee of Federation of Nepalese Chambers of Commerce and Industry (FNCCI), said that they are going to hold a special meeting with the finance minister and finance secretary next week.

“Despite repeated requests, the government has not lent its ear to our issue. Unless the government shows any seriousness, nothing is going to happen,” he said. In August, garment exports to the USA stood at $2,699,950.87 as against $4,674,386.32 in the previous month. The decline percentage is higher in August in comparison to the previous months and the same period last year, according to GAN. During August 2002, garment exports to the USA had gone up by 33 per cent and in September the same year, it had registered a growth of 63 per cent, according to exporters.

However, in later years, a number of garment manufacturing units have closed down and less than 100 units remain operational at present, which is also a cause of decline in exports, exporters said. However, business delegations, including government officials, have visited the USA on and off but the outcome has not been very productive due to our weak strategies, exporters blamed.