KATHMANDU, 20 April, 2021 (TON): Controls on foreign exchange have been progressively removed by the government and the central bank.

Foreign aid and foreign direct investment are the two other major sources of foreign exchange.

Experts say that tossing out import restrictions is the right thing to do now, but authorities should keep an eye out for possible disruptions to remittance inflows due to Covid-19, what with tourism knocked out and export incomes reduced to a trickle.

As a start, the cabinet on October 8 last year lifted restrictions on the import of foreign alcohol and luxury vehicles costing more than $50,000 for the official and personal use of foreign diplomats, diplomatic organizations and foreign officers.

In March, the freedom to import such as fancy automobiles, betel nuts, peas, peppercorns and dried dates were extended to all.

Furthermore, Nepal Rastra Bank lowered the daily import quota of gold to 20 kg from 10 kg, and permitted commercial banks to issue dollar cards for the procurement of foreign goods and services.

However, authorities had placed controls on the import of these items in April last year in a bid to conserve foreign exchange following concerns that Nepali migrant workers might lose incomes with the pandemic potentially spreading in the labor destinations.