Kathmandu: Nepal is facing a severe financial crisis after Sri Lanka. The crisis has been exacerbated by the fall in foreign exchange reserves. The reason for Sri Lanka's current economic crisis is the decline in foreign exchange reserves.

The country's fiscal deficit has risen to $ 2 billion, according to data released by the country's central bank. Economists say it is not optimistic to move forward in this situation. They also point out that while the current situation is not dire, situation like Sri Lanka.

Inflation in the country stood at 7.14 per cent. This is the highest rate in the last 67 months. Foreign exchange reserves fell by more than 20 per cent in the last financial year.

After the covid pandemic the country's main income source Tourism is on the verge of collapse. Tourism was the largest source of foreign investment in the country. In addition, declining exports and uncontrolled increase in imports led to a sharp decline in the country's foreign exchange reserves.

Nepal has also been hit hard by a sharp rise in fuel prices from India. It has also decided to impose power restrictions in the country as there is not enough power supply from India due to coal shortage. Nepal needs 400 megawatts of electricity per day. Of this, 300 MW will come from India.

The Government of Nepal has announced more restrictions to overcome the financial crisis. Nepal's Ministry of Commerce has banned the import of cars, alcohol and tobacco products. Imports of toys and jewelry  have also been banned.

Also they decided to impose power restrictions in the country as there is not enough power supply from India. Nepal needs 400 megawatts of electricity per day. Of this, 300 MW will come from India.

The government explained that the ban was aimed at spending foreign exchange only on the import of essential commodities. The government has decided to ban the running of government vehicles during the holidays. It also decided to reduce overall fuel consumption by 20 percent.