August 28: Minister for Industry, Commerce and Supplies, Dilendra Prasad Badu informed that the ban imposed on the import of certain luxury items will be lifted as soon as possible. The government has banned imports of ten items to prevent further decline in foreign currency reserves.
While addressing the opening session of the 42nd Annual General Meeting of the Nepal Foreign Trade Association (NFTA) on Friday, Minister Badu reiterated that the government banned the import of some luxury goods in order to preserve the foreign currency reserves.
“As soon as there are signs of improvement in the economy, usual trade will continue. The government is always ready to address the demands of businessmen related to the import and export sector,” said Minister Badu.
Minister Badu gave such an assurance in response to the demands made by other speakers during the programme to lift the ban on imports. Due to the decline in the foreign exchange reserves, the government had banned the import of 10 items including vehicles for private purposes and foreign liquor from April 26.
Minister Badu also said that the government is ready to resolve the problems of the export-import sector as per the suggestions of industrialists and added that he is expecting constructive suggestions in favor of a strong economy. He expressed his commitment to form a policy based on the opinions and suggestions received from the organizations related to the industrial and business sectors. In the same programme, former Minister of State for Industry, Commerce and Supplies, Motilal Dugad questioned the rationale behind banning imports, saying that all the goods that were banned from import were entering unhindered from illegal routes. He also requested the government to address the demands of industrialists who are known as the backbone of the economic sector.
Shekhar Golchha, president of the Federation of Nepalese Chamber of Commerce and Industry, said that although adverse conditions have been created due to the Covid-19 pandemic, there has been an increase in national and international investment in the country's industry and trade sector. Kamlesh Agrawal, senior vice president of Nepal Chamber of Commerce said that using monetary instruments to stop imports is not a solution to the problem. He also informed that import substitution will take time.
Agrawal also expressed his displeasure with the limit set by the Nepal Rastra Bank on current capital. He argued that the policy of controlling economic activities will not allow the government to meet its revenue targets.
President of the NFTA, Sunil Kumar Bansal, expressed concern over the sluggish development and capital expenditure in the country, protracted liquidity crisis, increase in interest rates of banks and migration of labor force to foreign countries, and stressed the need for cooperation between the government and the private sector for a prosperous and strong economy. He also requested the government to reduce the customs duty, lift the ban on imports and maintain multiple rates on value addition. Binod Kumar Sethia, senior vice-president of the association, requested the government to trust the private sector and proceed in the direction of improving the country's economy.
