As Nepal continues to struggle with dwindling foreign exchange reserves, the South Asian country's government has taken the decision to extend its complete ban on the import of ten different types of products, till the end of August. The Xinhua news agency reported that the prohibition, which was initially enacted in late April, was supposed to last until mid-July, when the current fiscal year came to an end, however it has been extended by one month. As per IANS, the official notice says that the embargo is in place to protect the balance of payments and external financial position, in order to fend off any impending threats to the economy.

Watch |&nbsp;Gravitas: G20 finance ministers huddle amid recession fears

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According to a notice published in the Nepal Gazette on Sunday, until August 30&nbsp;entry will be prohibited&nbsp;for mobile phones priced at&nbsp;more than $300 US and motorcycles with engines larger than 150 cc, as well as for alcoholic beverages, tobacco products, diamonds, colour television sets larger than 32 inches, jeeps, cars, and vans, dolls, playing cards, and snacks.

Talking to Xinhua, senior economist Keshav Acharya explained, "As there has been no improvement in foreign exchange reserves, the government currently has no other options but to impose a ban on the non-essential goods which had contributed to the outflow of foreign currencies."

Also read |&nbsp;<a href="https://www.wionews.com/south-asia/srilankadollarchallenge-sri-lankans-abroad-try-to-save-countrys-economy-via-viral-internet-trend-498161" hreflang="en">#SriLankaDollarChallenge: Sri Lankans abroad try to save country's economy via viral internet trend</a>

He said that despite the impact of this ban on revenue, "we cannot let the country slip in the direction of Sri Lanka by allowing unrestricted import of goods."

According to Nepal Rastra Bank, the country's foreign exchange reserves declined by 19.6 per cent to 9.45 billion US dollars during the first 11 months of the 2021–22 fiscal year. In mid–July 2021, they stood at 11.75 billion US dollars.
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As Nepal continues to struggle with dwindling foreign exchange reserves, the South Asian country's government has taken the decision to extend its complete ban on the import of ten different types of products, till the end of August.

As Nepal continues to struggle with dwindling foreign exchange reserves, the South Asian country's government has taken the decision to extend its complete ban on the import of ten different types of products, till the end of August. The Xinhua news agency reported that the prohibition, which was initially enacted in late April, was supposed to last until mid-July, when the current fiscal year came to an end, however it has been extended by one month. As per IANS, the official notice says that the embargo is in place to protect the balance of payments and external financial position, in order to fend off any impending threats to the economy. Watch | Gravitas: G20 finance ministers huddle amid recession fears According to a notice published in the Nepal Gazette on Sunday, until August 30 entry will be prohibited for mobile phones priced at more than $300 US and motorcycles with engines larger than 150 cc, as well as for alcoholic beverages, tobacco products, diamonds, colour television sets larger than 32 inches, jeeps, cars, and vans, dolls, playing cards, and snacks. Talking to Xinhua, senior economist Keshav Acharya explained, "As there has been no improvement in foreign exchange reserves, the government currently has no other options but to impose a ban on the non-essential goods which had contributed to the outflow of foreign currencies." Also read | #SriLankaDollarChallenge: Sri Lankans abroad try to save country's economy via viral internet trend He said that despite the impact of this ban on revenue, "we cannot let the country slip in the direction of Sri Lanka by allowing unrestricted import of goods." According to Nepal Rastra Bank, the country's foreign exchange reserves declined by 19.6 per cent to 9.45 billion US dollars during the first 11 months of the 2021–22 fiscal year. In mid–July 2021, they stood at 11.75 billion US dollars. Watch WION LIVE HERE: You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here.

Looking to preserve forex reserves, Nepal extends import ban on ten items

Nepal has been reeling under an economic crunch, the country's finance minister of the newly formed federal government, Dr. Yubaraj Khatiwada has revealed.

While addressing the Nepal Parliament on Friday with the release of the white paper, Khatiwada said that the state coffer was virtually empty.

"Due to the indiscipline at the time of making expenses the coffer of the state is almost empty. The levied tax has been deducted against the established terms and the regulations.&nbspThe agreements have been given over the use of resources without adequate plans and strategies," he said.

Khatiwada, who is also the former governor of the Central Bank of Nepal also claimed the investment environment in the country was not attractive and favourable, while he highlighted the inadequate flow of pledges made over the times.

"The investment environment of Nepal in comparison amongst the international arena is not much favourable. Nepal's attempt against the property improvisation and investment over the criminal activities to gain good image and stable economic system, expansion of international trade and the investment are influenced. So, we need to work with much conscience over these issues," he added.

Nepal is set to bring its fiscal budget after three months, as the economic crunch has hit the incumbent Communist Party of Nepal (Unified Marxist-Leninist) (CPN-UML) government hard.

With the adaptation of the federal system, the expenses and the budget size for the upcoming years needs to be increased, but insufficient funds have made it a major problem for the economy to run full-fledged.

Furthermore, Khatiwada stated that the current crunch upon the government is the result of its investment in public enterprises that is yet to pay them for the management of the employees'&nbspsalaries and operation of the retirement fund.

Nepal underwent a decade-long Maoist insurgency in the 2000s and the 2015 earthquake has massively hit the economy of the Himalayan nation.

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'Due to the indiscipline at the time of making expenses, the coffer of the state is almost empty'

Nepal has been reeling under an economic crunch, the country's finance minister of the newly formed federal government, Dr. Yubaraj Khatiwada has revealed. While addressing the Nepal Parliament on Friday with the release of the white paper, Khatiwada said that the state coffer was virtually empty. "Due to the indiscipline at the time of making expenses the coffer of the state is almost empty. The levied tax has been deducted against the established terms and the regulations.&nbspThe agreements have been given over the use of resources without adequate plans and strategies," he said. Khatiwada, who is also the former governor of the Central Bank of Nepal also claimed the investment environment in the country was not attractive and favourable, while he highlighted the inadequate flow of pledges made over the times. "The investment environment of Nepal in comparison amongst the international arena is not much favourable. Nepal's attempt against the property improvisation and investment over the criminal activities to gain good image and stable economic system, expansion of international trade and the investment are influenced. So, we need to work with much conscience over these issues," he added. Nepal is set to bring its fiscal budget after three months, as the economic crunch has hit the incumbent Communist Party of Nepal (Unified Marxist-Leninist) (CPN-UML) government hard. With the adaptation of the federal system, the expenses and the budget size for the upcoming years needs to be increased, but insufficient funds have made it a major problem for the economy to run full-fledged. Furthermore, Khatiwada stated that the current crunch upon the government is the result of its investment in public enterprises that is yet to pay them for the management of the employees'&nbspsalaries and operation of the retirement fund. Nepal underwent a decade-long Maoist insurgency in the 2000s and the 2015 earthquake has massively hit the economy of the Himalayan nation.

Nepal reeling under tough economic stress: Finance Minister

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Looking to preserve forex reserves, Nepal extends import ban on ten items

Nepal reeling under tough economic stress: Finance Minister