The Government of Nepal has initiated the construction of the Rs. 2.5 bn garment processing zone within the Simara Special Economic Zone (SEZ). The project expected to complete by 2018-19, will lower the cost of production while increasing the scope of exports. The production cost in Nepal is considered to be relatively high in the region. The services that will be offered at the processing zone will make the price of Nepali products competitive in the international market.