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Policy / Strategy

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PETS Project

Pashmina Enhancement and Trade Support (PETS)Project has been supported by the Enhanced Integrated Framework (EIF) in order to respond to the trade related development priorities of Nepal as identified in the NTIS as well as to build sustainable local capacities and leverage additional resources from development partners. The duration of the project is for three years and EIF has contributed US$ 1,861,603 whereas Government of Nepal has contributed US$ 200,000 in kind. An agreement has been done between the implementing agency-International Trade Centre (ITC) and the executing partner, MoCS. The overall purpose of the project is to contribute to socio-economic development through export growth and market diversification of Chyangra Pashmina (CP) products, manufactured by pashmina exporters in Nepal. The pashmina sector is a priority sector for export development identified by the GoN.


The project aims to strengthen the competitiveness of the Chyangra Pashmina (CP) sector through interventions along its value-chain and through strengthening the institutional capacity at sector level. Capacity will be built at the Nepal Pashmina Industry Association by developing a practical medium-term plan, developing its service potential towards the industry, undertaking supply chain analysis for fibre in goat farming areas as well as creating institutional capabilities to develop and elaborate project documents and business plans to tap into existing donor support, especially at farmer level. The international competitiveness of processed CP products will be strengthened by developing product development and design development capacities at institutional and enterprise level and subsequently assisting enterprises to expand existing markets and/or concur new ones. Moreover, support will be provided to create awareness of the CP trademark that has already been registered in more than 41 countries. The trademark will be promoted in priority markets and domestic market surveillance will be well established. The project further aims to achieve long-term sustainable impact by strengthening national capacities throughout the implementation phase.


The project’s expected results revolve around three interconnected outcomes, namely:


Outcome 1) NPIA provides sustainable services to its members and CP stakeholders: Building sustainable capacities of the CP’s sector institutional support infrastructure, namely at the Nepal Pashmina Industry Association (NPIA), resulting in sustainable services delivery capacity along the entire CP supply chain. One particular element of strengthening NPIA will be to build its capacity to undertake a supply analysis of fibre availability in the Upper Himalaya and to elaborate business plans and project proposal to generate funds to address supply side constraints.


Outcome 2) CP manufacturers increase exports in target markets due to increased International competitiveness: Under this outcome the international competitiveness of CP products will be enhanced through institutional and enterprise development in product and market development, resulting in increased exports and sales to tourists.


Outcome 3) Buyers in priority markets recognize CP label as a niche luxury product: Expected results under this outcome refer to increased awareness of the CP Label and increased recognition of CP products as a niche luxury product in priority markets.


The project will build sustainable capacities within the National Implementation Unit and other relevant entities through their active involvement in each step of the project cycle. The aim is to support Nepal’s efforts in advancing its trade-related development agenda.


At the sector level this initiative will play a key role in allowing CP exporters to brand, position and promote their newly designed products, while also creating new market links with overseas buyers. The newly created CP trademark will be promoted in priority markets and domestic industry surveillance will be established. The project will also contribute to find pilot solutions for adding increased value in the local wool industry by building the necessary capacities at the Nepal Pashmina Industry Association to analyse backward linkages, i.e. the fibre supply situation and to develop business plans and project proposals that address value addition at farm level and linking farmers to processors. It is expected that these will be taken on by other potential donors such as e.g. the ADB-financed HIMALI project. Thus, NPIA will be strengthened to support the sector’s export development in a sustainable manner. The project office will therefore be located in NPIA.


The implementing team will work closely with the NIU, the EIF Focal Point, other Governmental entities and support institutions (at national and sector level) to bring about the project’s objectives. In order to assure country ownership and an effective day-to-day support for project related tasks inside of Nepal, a National Project Coordinator will be hired and located within the NPIA. The approach rests in “learning by doing”, with local TSIs and firms taking an active role in delivering project activities.


Synergies and complementarities between the current project and other similar initiatives developed by international bilateral and multilateral development agencies will be promoted. As an EIF project, existing local institutions will be given preference as implementing partners, if and where deemed sufficiently effective.

Copyright 2014. EIF Nepal