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Kathmandu, Nepal, July 18, 2022: Owing to the trade deficit, particularly the meager condition in the foreign exchange reserves, the government has given continuity to the ban on import of luxurious non-essential items.
The ban imposed on the luxurious goods listed under 10 categories will continue until coming August 30. The government had banned the import of these items from April 26 with the aim to manage the trade deficit, particularly the foreign exchange reserves.
According to the notice issued on Nepal Gazette by the Ministry of Industry, Commerce, and Supplies, the ban is imposed on the import of luxury items such as vehicles exception of ambulances, diamonds, color television sets bigger than 32 inches, all kind of readymade beverages items, cigarette and tobacco products, all kinds of toys and playing cards and edibles products such as snacks like chips, crackers, etcetera.
The government has also given continuity to tighten on the import of two-wheelers and mobile phone sets by further lowering the ceiling. The ceiling lowered in the mobile phone is $300 from $600 while ceiling lowered in two-wheelers is 150 cc from 250 cc.
However, the ban will not be applicable to the companies that have completed the banking process prior to July 17 to import the goods.
The Nepal Rastra Bank (NRB), the central bank of Nepal has recently revealed macroeconomic update stating that the foreign exchange reserves has slumped by 19.6 per cent from $11.75 billion in mid-July of 2021 to $9.45 billion in mid- June.
Likewise, the foreign exchange reserve is sufficient to cover the prospective merchandise imports of 7.53 months, and merchandise and services imports of just 6.73 months.
