Export of readymade garment continues downward trend

February 3, 2006
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The downward move of the export of Nepalese readymade garment continues in 2006 as well recording a fall of 8 percent in the month of January.

The export of readymade garments decreased by 41 percent in 2005, following the termination of quota free access to Nepalese readymade garments from 1 January 2005.

According to data released by Garment Association of Nepal (GAN), Nepal exported garment worth a total of US$5.60 million during the month.

The export in the same month of the last year was US$ 6.08 million, which again was a decline of over 46 percent as compared to the same month of 2004.

This is the 15th consecutive month the largest foreign currency earner is facing decline.

Export of readymade garment declined by 30 percent in 2004 and 41 percent in 2005.

According to GAN, the number of Nepali garment manufacturing units operating in the country has plummeted to 25 and about 50,000 people employed in the sector have lost their jobs thanks to the sharp decline.

Garment entrepreneurs have been urging the government to set up garment processing zone and initiate effort to pass a bill in the American senate, which will provide duty free access to readymade garments to give life to the ailing garment industry.