KATHMANDU, Oct 26: Import of gold into Nepal surged almost sixfold in the first quarter of the current fiscal year (FY) despite a notable price hike of the precious yellow metal.
The records with the Department of Customs (DoC) show that Nepal imported 606 kg of gold during mid-July and mid-October this year, up from 113.5 kg in the same period of last FY. According to gold traders, investors were attracted by the increased price of gold citing a possible higher rate of return from investment in gold.
As per the Federation of Nepal Gold and Silver Dealers’ Association, the price of gold escalated by over Rs 60,000 per tola (11.66 grams) during the review period. While the price stood at Rs 193,300 per tola as of mid-July, it crossed Rs 250,000 per tola in mid-October.
Citing the surge in demand for gold, Nepal Rastra Bank increased the daily import quota to 25 kg from 20 kg. In the review period, raw gold worth Rs 10.25 billion and gold jewelries of Rs 71.50 million were imported into Nepal. The government collected customs revenue of Rs 1.023 billion from gold imports.