Export industry sector can be a major driving force for the Nepalese economy. A significant expansion of the export industry could be the backbone for the overall economic development of the country and it depends on the national investment as well as on the attraction of foreign investment bringing in technology, marketing expertise and capital. Nepal, after being a member of WTO, must lift its capacity in economic fronts to sustain and move forward through the highly competitive world economic market. Promotion of export based industries and diversification of export market are the major factors which can contribute significantly to the development of economic activities and thus to the overall upliftment of the living standard of the people.Government of Nepal (GoN) has adopted the concept of Special Economic Zone (SEZ) to attract foreign and domestic investors to invest and establish industrial and business units, which will make substantial contribute to the economic development of the country.

Special Economic Zone (SEZ) is envisioned by the government to create a specific commercial area for promotion of foreign trade. The regulation within this commercial area is more liberal which intends to avoid restrictions placed within the domestic legislation of Nepal. The industries established within the SEZ have special privileges which are placed to support their industrial productions. The focus of the government is to maintain trade balance through export promotion and import management.