Kathmandu, Oct 13: Nepal’s banking sector has reported a significant decline in loans to the liquor and tobacco industries, with banks providing over Rs 25 billion in loans, a drop from Rs 28.35 billion in the previous fiscal year.
Last year, banks extended Rs 23.76 billion for liquor production and Rs 13.32 billion for tobacco import and production.
Businessmen said that the downturn in business has led many entrepreneurs to avoid taking loans. The government’s previous import restrictions temporarily boosted local liquor sales, shifting consumer preferences towards domestic products. As a result, fewer loans are being taken out for importing foreign liquor.
Despite this decline, the total amount of loans for liquor and tobacco businesses has increased over the past decade, growing 2.5 times since the fiscal year 2070/71, when banks issued Rs 7.04 billion in loans.
By the last fiscal year, this figure had risen to NPR 18.5 billion for liquor alone. In contrast, loans for tobacco saw a modest increase of only 19.23% over the same period, growing from Rs 1.11 billion to Rs 1.33 billion.
The shift in consumer behavior and the challenges faced by businesses may lead to further changes in lending patterns in the future.
Over 7.9 million liters of alcohol imported in a year, mostly from India and France
According to data from the Customs Department, a total of 7,985,106 liters of alcohol was imported during the last fiscal year. During this period, alcohol worth over Rs 396.4 million was imported from 40 countries, with India being the largest source.
Additionally, last year, 85,559,000 kg of tobacco was imported into Nepal, valued at Rs 4.421 billion, as per the Customs Department’s data. The majority of the tobacco was also imported from India.
Tobacco was imported from countries including China, the Philippines, Malaysia, and the United States, ranging from 500 kg to 5,269,000 kg. #import #nepal #tobacco #alcohol
Bank’s investment in alcohol and tobacco (in 10 lakh)
