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NADA urges PM to work for opening LC to import vehicles



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By A Staff Reporter
Kathmandu, Apr. 9: The delegation of NADA Automobile Association of Nepal has met Prime Minister Sher Bahadur Deuba and requested to work towards opening letter of credit (LC) needed to import vehicles.
A business delegation led by NADA President Dhrub Thapa called on the Prime Minister on Friday and asked him to immediately address the issues of unexpected closure of LC for the import of automobiles.

They complained to PM Deuba that the opening of import LC has been stopped unexpectedly which affected the sector badly.
During the meeting, they shared with PM Deuba that financial institutions, including banks, stopped opening LC without giving any time to the businessmen, ignoring the automobile sector, said Thapa.

Nepal Rastra Bank (NRB) had urged the banks to control the import of luxury items, including vehicles, citing that the decline in foreign reserves had not been stopped due to high imports.
During a meeting in Baluwatar this morning, the Prime Minister said that the government would take initiative to solve the problem, Thapa said.

"We have talked to the Prime Minister about the current problem. PM Deuba assured to solve the problem soon after holding discussions with the stakeholders,” he told The Rising Nepal.
Prime Minister Deuba took the suggestions of NADA positively and assured that necessary instructions would be given to the concerned bodies regarding opening of LC for importing of vehicles, he said.

Thapa said that the import of vehicles used for essential services, including school, had also been stopped and the situation would be dire if not address immediately.
"We are ready to support the government to stop the import of luxurious vehicles. But, the government should restrict specific vehicles by giving time to us," he said.
He said that Nepal has invested more than Rs. 200 billion in the automobile sector, contributing more than Rs. 150 billion in revenue every year and providing employment opportunities to more than 50,000 people in the country.