November 11: The government has banned the imports of vehicles in a bid to save foreign exchange reserves. However, the imports of electric vehicles are allowed. Imports of light vehicles like cars, vans and jeeps for personal use have been banned. But, the ban has resulted in the closure of many dealers across the country, adding financial burdens to the businesspersons, according to the NADA Automobiles Association of Nepal.

Similarly, hike in interest on loans by banks and financial institutions has also added to their problems.    
In the last fiscal year (FY 2021/22), banks and financial institutions invested around Rs 95 billion in this sector. According to the latest data of NADA, at least 58 vehicle dealers across the country have shut down as a result of the ban imposed by the government.
Likewise, 100 others are on the verge of closure. The vehicle dealers that have shut down include nine in Province 1, 11 in Madhes Province, 18 in Bagmati Province, seven in Gandaki Province, three in Lumbini Province, seven in Karnali Province and three in Sudurpaschim Province.    
A total 1,025 vehicle dealers are in operating across the country, said the NADA. Out of them, 145 are in Province 1, 95 in Madhes Province, 378 in Bagmati Province, 182 in Gandaki Province, 105 in Lumbini Province, 62 in Karnali Province and 58 in Sudurpaschim Province.    
NADA General-Secretary, Surendra Kumar Upreti, said that the government has extended the ban which has further put this struggling business in trouble.    
"We have been frequently urging the government to remove the ban. We have only got assurance from the government," he shared.    
Upreti further said all dealers operating in the Kathmandu Valley would be closed if the ban continues even after mid-November.    
"We have been running office and providing salaries to staff by taking loan from banks as the business is considerably down. Vehicle dealers have been closed after they could not afford the expenses. Dealers of heavy vehicles will be closed if such situation persists," he added.    
With the closure of vehicle dealers, more than 1,000 staff across the country have become jobless, according to NADA.    
Issuing a notice in the Nepal Gazette on April 26, the Ministry of Industry, Commerce and Supplies had banned the imports of 10 different types of items citing a decline in foreign exchange reserves of the country.      
Although the ban on six of those items have been lifted, the government has extended the ban on the imports of smart phones priced over USD 300, jeeps, cars, vans and motorcycles with capacity of more than 150 cc till December. -- RSS