August 3: The import of gold has increased by 103.14 percent in the last fiscal year 2077/78. This has been revealed by the data on import and export made public by the Department of Customs.

Statistics show that Nepal imported gold worth Rs 27.34 billion in the last fiscal year, which is Rs 13.88 billion more than the previous fiscal year 2076/77.

Based on quantity, 3,924 kg of gold was imported last year. The quantity was 2,400 kg in the previous year.

Import of gold had greatly plummeted in the previous fiscal year due to the coronavirus pandemic as well as significant rise in prices.

In Fiscal Year 2075/76, gold import was worth more than Rs 34.5 billion. This amount was reduced to 13.64 billion in fiscal year 2076/77. Although gold imports have doubled in the last fiscal year, it is less than that of fiscal year 2075/76.

Imports also increased last year as the coronavirus pandemic subsided and demand for gold jewelry increased. Due to the second wave of coronavirus, the business of gold jewelry again came to standstill when the prohibitory order was imposed in late April. But since the gold jewelry business was doing well prior to that, the overall gold import increased during the review period.

President of the Federation of Nepal Gold and Silver Dealers Association, Manik Ratna Shakya said that the trade of gold jewelry was good even amidst the coronavirus pandemic.

According to him, the gold import has increased because of the increase in quota of gold import and increase in demand for jewelry in the market.

In the previous fiscal year, the price of gold rose in the international market due to the trade war between the US and China. Later, due to the coronavirus pandemic, the price of gold began to rise further. During that time, the price of gold in Nepal, which was around Rs 60,000 per tola, had gone up to Rs 103,500. As the price of gold rose, its trade plummeted in Nepal. Gold imports were affected by those reasons. However, gold imports seem to be on the rise currently.

Last July, Nepal imported more gold than average. According to the statistics, raw gold worth Rs 6.27 billion had been imported. In Nepal, an average of up to Rs 3 billion worth of gold is imported monthly. However, in last July, gold imports were twice as high as the average i.e. Rs 6.27 billion. Statistics show that, 906 kg and 500 grams of raw gold had been imported in June itself.

Gold import was completely null from mid-April to early June due to the second wave of coronavirus and the prohibitory order imposed to control it. Statistics have shown that gold imports have also been high since the prohibition was lifted in June.

Only commercial banks in Nepal have the authority to import gold. However, they have been importing gold on the recommendation of the federation. They are allowed to import up to 20 kg of gold on a daily basis.