Price hike, inflation and consumption

Restricting imports does not promote domestic goods nor support a free market economy.

The current state of the Nepali economy appears to be in complete disarray. There are several indicators of the dwindling economy. Declining foreign currency reserves, a balance of payments deficit, low capital expenditure and declining overseas remittances are some of them. Among all these, the ballooning trade deficit which is likely to reach Rs1,700 billion by the end of the current fiscal year seems to be the most severe one. The government has taken several measures to contain the impending crisis that the economy is likely to face in the days to come. It has announced a two- day weekend policy to lessen oil consumption and banned the import of 10 types of luxury goods to reduce the trade deficit by curbing consumption.