November 11: The country has witnessed high growth in import of gold lately. The import of gold had declined in the last two fiscal years due to high inflation and the Covid-19 pandemic. However, the import of gold has increased in the current fiscal year. 

According to the Department of Customs, gold worth Rs 11.72 billion has been imported in the first three months of the current fiscal year. This is 47 times more than the import in the corresponding period of last fiscal year (FY 2020/21), when gold worth Rs 737 million was imported into the country.

The import fell after the gold and jewelry business was affected by the pandemic. Likewise, in the corresponding period of the previous year (FY 2019/720), import of gold had declined due to the increase in price. However, the import of gold has skyrocketed in the review period this year. 

During normal circumstances, Nepal imports gold worth Rs 7 to 8 billion in a quarter. Nevertheless, this time, gold worth more than Rs 11 billion has been imported. 

President of the Federation of Nepalese Gold and Silver Dealers Association Manik Ratna Shakya says that the import of gold has increased due to the increased mobility of people during the festival this time.

“Gold business had been affected in the last two fiscal years due to increasing prices and the pandemic. But now that the impact of the pandemic has slowed down and prices have dropped,” he said, “On top of that, people have started buying jewelry in festivals like Teej, Dashain and Tihar. Imports have also increased due to the increase in demand in the market.”