Nepal has been one of the worst hit countries by the end of textile and clothing quotas, according to a report from the United Nations Development Program (UNDP).

Value and volume of textile and clothing exports fell 22% and 28% respectively last year, the report said.

US market losses were more pronounced than in the EU, with the value of US exports slumping about 55%.

"Nepal remains extremely vulnerable and locked into the export of a narrow range of items," the report said.

The country needs large-scale spending on training and human resources improvements, it added, and must concentrate on widening its range of exports and markets.