Nepal PM Balen Shah Meets ADB President After Rs 22 Billion Loan Deal to Modernize Customs and Boost Trade

Prime Minister Balen Shah held a high-level meeting with Asian Development Bank (ADB) President Masato Kanda at the Office of the Prime Minister and Council of Ministers on Tuesday, a day after Nepal and the ADB signed a Rs 22 billion (USD 165 million) concessional loan agreement aimed at improving the country's customs system and strengthening international trade.

The loan agreement, signed at Nepal's Ministry of Finance on Monday, will fund two major development projects focused on modernizing customs operations and enhancing trade efficiency. The initiative is expected to introduce advanced digital technologies, simplify customs procedures, adopt risk-based inspection systems, and reduce delays and costs for businesses involved in cross-border trade.

During the meeting, Prime Minister Balen Shah and ADB President Masato Kanda discussed Nepal's ongoing development priorities and the importance of international cooperation in supporting sustainable economic growth. The discussion also highlighted the ADB's continued partnership with Nepal in improving infrastructure, governance, and trade competitiveness.

According to government officials, the customs modernization project will make Nepal's border management more transparent, predictable, and business-friendly. By digitizing customs processes and streamlining inspections, the government aims to improve the movement of goods, reduce administrative burdens, and encourage greater regional and international trade.

The government also expects the project to create new employment opportunities by increasing trade-related economic activities and strengthening Nepal's integration into regional and global value chains. Improved customs efficiency is seen as a key step toward attracting investment, boosting exports, and supporting long-term economic development.

The Rs 22 billion ADB loan represents one of the latest efforts to accelerate Nepal's economic reforms through international development financing. Officials believe that successful implementation of the projects will improve the country's trade environment while contributing to sustainable economic growth and greater regional connectivity.