By Shanker Man Singh  Nepal's imports have been growing at a very fast pace in recent years and will continue to do so in the future. There has been a slow increase in GDP and some declines have been observed in recent years. However, the purpose of such management is not to control imports but to make optimal use of the limited foreign exchange resources available for import financing in line with national objectives of development, equity and satisfaction of basic needs. Although Nepal has entered the world trade system with high expectations and with the entry of WTO, due to the current economic crisis, COVID, the Russia-Ukraine war etc., the overall import plan at the national level has been approved by Nepal that must be based on the amount of money available for imports. As such, the foreign exchange budget should be prepared by a committee comprising secretaries of the Ministry of Finance and the Ministry of Commerce and the Governor of the Nepal Rastra Bank (NRB). The amount of convertible foreign exchange available to importers should be determined on the basis of: development import requirements from abroad; projected inflows of both foreign exchange and Indian currency; estimated demand for total imports based on monetary expansion, volume of domestic production and other relevant factors; estimated requirements of convertible currency for purposes other than imports; current levels of convertible and foreign exchange reserves in Indian currency and long-term requirements for foreign reserves must be considered. The foreign exchange budget should also include the protection of receipts and expenditures of Indian currency to reflect the overall foreign exchange status of the country, even if there is no foreign exchange control over Indian currency. One of the most important considerations in the distribution of convertible currency is to maintain the right balance between imports from abroad and India. High levels of deficit financing need to be managed through convertible currency sources to imports from abroad. It is almost certain to lead to a similar increase in imports from India, and if Nepal's increased Indian currency reserves are not enough to meet the demand, convertible currency should be used to buy Indian currency. These things should always be kept in mind while planning to import from abroad and India. The foreign exchange available for import should be divided into different categories of food items in the following order of priority; agricultural materials such as fertilizers, pesticides, industrial machinery and raw materials, construction materials, petroleum products and other development materials, consumables. The Ministry of Industry, Commerce and Supplies should make detailed allocations and guidelines within the first four items according to the actual needs of both the public and private sectors. Any amount remaining after these allocations should be allocated for import of consumer goods. The country has imported Rs 46 billion for vehicles, 35 billion for mobiles, 2.5 billion for liquor and 2.5 billion for cigarettes in the last nine months. Despite the decision of the banks not to open letter of credit (LC) on non-essential items to tighten the country's import controls, billions of rupees worth of luxury goods have been imported in the last nine months. It is ironic and a bitter reality that the import of fruits and food items that can be produced in the country along with luxury items has skyrocketed. The trade deficit has reached Rs 1.36 trillion in just nine months. This is an increase of 28.47 percent over the same period last year. The import and consumption of fuel is increasing every year even though there is talk of electric vehicles and electric stoves as an alternative to fuel in the budget and later. Billions of rupees have been spent on the import of luxury goods such as cars, gold and silver, alcohol, cigarettes, mobiles, perfumes, hair dyes and body lotions. Foreign exchange reserves are declining due to the import of such commodities. Nepal Rastra Bank (NRB) has said that it is positive to tighten the import of various commodities to reduce the increasing imports in Nepal and to manage the pressure on foreign exchange reserves. It is seen that the tightening of imports by NRB will increase the price of goods and services, but tightening imports will have more positive than negative effects. The possibility of increasing illegal trade due to open borders cannot be ruled out. Nepal generally has a current account deficit, which means we usually import more goods and services. Nepal's export is possible if the price and quality we sell are attractive to foreigners. We import them because they are attractive and necessary to us. This is, in short, the principle of comparative advantage. In terms of current account deficit alone, our overall comparative advantage is lower than that of trading partners. Anyway, another reason why our consumption pattern is more import oriented. Imports and exports of any country can affect the country's GDP, its exchange rate, and the level of inflation and interest rates. Rising imports and rising trade deficits could have a negative impact on the country's exchange rate. A weaker domestic currency makes exports lower and imports more expensive. In contrast, a stronger domestic currency makes exports higher and imports cheaper. High inflation can have a direct impact on input costs such as materials and labor. It is important for the country to maintain a proper balance of imports and exports. Nepal has an open and transparent import system. The rules and regulations relating to imports are related to the Ministry of Industry, Commerce and Supply]ies and its various bodies and the Customs Department. Being a landlocked country, most of Nepal's international trade is transit through India. Nepali cargo mostly comes through the Indian ports of Haldia and Kolkata in West Bengal but is also used for transporting Nepali goods as the Visakhapatnam port in Andhra Pradesh. From the respective ports, goods are transported to the border customs of Nepal via railways or roadways. Importers can use airfare to send goods to Nepal from Tribhuvan International Airport in Kathmandu. labour. To sum up. proper import management has become necessary and essential to reduce Nepal's trade deficit.