The government will discourage the import of ICE vehicles by tightening the screws on auto loans provided for such vehicles. The cabinet has decided to discourage the import of vehicles running on petroleum products within 6 months.

According to the ‘Trade Deficit Reduction Action Plan, 2079 B.S’ approved by the Council of Ministers, vehicle loans provided for ICE vehicles will be reviewed within 6 months and will be addressed through Nepal Rastra Bank. Similarly, in the action plan, there are plans to encourage the use of electric vehicles by facilitating auto loans for such vehicles.

“In order to discourage the import of private vehicles that run on petroleum fuel, the central bank will adopt a policy so that the review of vehicle loans given to such vehicles will be implemented within 6 months,” the action plan states. “As an alternative, the banking facility provided for the purchase of electric vehicles will be made simple and convenient”, it further mentions.

As per the government, if such measures are implemented within the next 6 months, it will reduce the import of private vehicles running on petroleum products and increase the use of electric vehicles.