The government has so far been slow in addressing the needs of the automotive sector in Nepal. The sector that has been subjected to stringent government regulations over the last few years needs an instant revival in the context of the ongoing slowdown. Now, COVID-19 has left this sector in severe distress. The sector which has been left out of the government’s emphasis is in the necessity of a financial support and demand revival.

“The COVID-19 pandemic has affected various sectors of the country including industry, business, tourism, construction, remittances, and foreign investment. If the government can bring a budget with relief considering all these problems, the economy will function”, says Krishna Prasad Dulal, President – NADA Automobiles Association of Nepal, the apex body of automotive dealers in Nepal. ”

” Due to the ongoing lockdown, the government has already lost Rs 30 billion in revenues from the automobile sector alone and the entire sector is now being paralysed”, he further adds. Hence, the government should consider the plight of this industry to bring it back on its feet.  Here are a few of his suggestions ahead of the 2020/21 Budget.

1. By reducing the interest rate on loans of the entire industry by 5% and postponing the principal interest or installment for a few months, the government should allow the industries to run.

2. Without the growth of automobiles, it is impossible for the development of infrastructures as well as modernization in agriculture. Hence, it is necessary to take this into consideration. The government should protect 2 million jobs in this sector.

3. In order to protect the domestic manufacturing sector, the government should adjust the custom revenues. This will help in the development of our homegrown industries as well.

4. The government should invest heavily in tourism, health, and agriculture in this year’s budget and announce a relief package too. In the agricultural sector, fertilizer, seeds, irrigation, and mechanization should be subsidized and its development should be started. It’s high time we focus on internal tourism now.

5. Due to this unprecedented crisis, many industries will take a long time to recover. In this situation, even if the government reimburses last year’s income tax paid by the industries, it would be a big relief to this sector and the business community would have a lot of confidence in the government.

6. The economic cost of the lockdown and the employment of thousands of Nepalis are at stake. Therefore, an immediate lifting of the lockdown with necessary precautionary measures is needed.