Import ban impacts in Nepal

The negative consequences and long-term harms of import restrictions should not be overlooked.

Nepal primarily relies on imports to supply domestic demand. The ongoing Russia-Ukraine war and the resulting increase in prices of essential commodities like food, fuel and fertilisers have significantly impacted the country’s import-dependent economy. Nepal’s main imports include refined petroleum ($2.24 billion, 16 percent of total imports), followed by petroleum gas ($504 million, 3.75 percent), gold ($433 million, 3.23 percent), rice ($322 million, 2.4 percent), and soybean oil ($306 million, 2.2 percent), with India being the primary source for these goods. The rise in imports coincided with the demand-led recovery following Covid-19.