Study on the Gaps of the Capacity of Nepalese Logistics Service Provider

20 September, 2023


Logistics can be considered as a pushing factor in the country’s economic development. Nepal ranks 114 in the  Logistic Performance out of 167 states in 2018, and the 2023 Logistic Performance Index (LPI) document prepared by the World Bank additionally cites the varying degrees of challenges that landlocked states face, especially in corridor delays. Recent developments in Nepal that include the introduction of a new Trade Logistics Policy by the government point towards the requirement for a careful assessment of the institutional coordination and working modalities of the Logistical Service Providers (LSPs). Moreover, Nepal being an import-based economy (around 30% of its GDP), logistic costs in Nepal remain very high than that of other regional countries to nearly 20 to 25%.  Therefore, the research undertaken for the purpose of assessing the capacity of the LSPs in facilitating international trade in Nepal seeks to address the existing gaps in their overall administrative and legal functioning. 


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