Nepal

Hundreds of people associated with the automobile business joined in a sit-in at the Maitighar Mandala to protest the government ban on the import of vehicles.

The auto dealers have been calling on the government to ease trade restrictions and review its monetary policy for over a month.

Wearing black armbands, the protesters carried banners and placards with inscriptions such as "We are in protest", "Control interest rate".

President of Nepal Automobile Dealers Association Dhruba Thapa said they decided to hold a series of protests after the government overlooked their repeated requests to ease the import ban on vehicles. 

"We have repeatedly urged the government to remove the ban. Except for paying lip service, nothing was forthcoming from the government's side," Thapa said. 

"The government has eased restrictions on some luxury items following an improvement in foreign currency reserves. But the ban on the imports of vehicles has been extended," he added. "The government has been biased against the automobile business."

The NADA head also launched a broadside against the central bank for failing to address the ongoing liquidity crisis. This has led banks and financial institutions to hike interest rates.

The recent hike in interest rates on loans by banks and financial institutions has compounded the problem, according to auto dealers. The banks and financial institutions lent around Rs95 billion to auto dealers in the last fiscal year 2021/22.

The regulatory bank came under fire from automobile traders for allowing the commercial banks to increase the threshold on hire-purchase, slapping a 100 per cent cash margin on the letter of credit for vehicle imports.        

NADA officials claim the extended ban on imports of light vehicles like car, van, and jeep for personal use have forced hundreds of auto dealers across the country to shut down their businesses.

According to NADA, nearly 100 automobile dealers across the country have shut down due to the ongoing ban.