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What alternative?

The Nepal Rastra Bank has decided to tighten commercial banks from providing loans on vehicle imports. This is a good move to reduce the amount of trade deficit the country is facing. The automobile dealers were receiving upto 90 percent of loans on the price of the vehicle for a short period. After tightening the loans on vehicle imports, the automobile dealers are saying that it will reduce the capital flow in the market and shrink the economy.
The government decision will surely hurt the automobile business. And automobile dealers are right that it may shrink our economy. Along with taking such a decision, the government should have developed another policy such as providing subsidies to the automobile dealers while establishing auto-parts industries in the country or establishing automobile battery producing plants and installation of e-vehicles assembling plants within the country, among others. Such a move would encourage the automobile dealers to shift their ongoing business instead of making them business-less.

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