Decline in Mobile Phone Imports Affects Nepal's Market

There has been a significant decline in the number of mobile phones entering Nepal, as reported by the Customs Department's international trade statistics. In the previous financial year 2078/79, the country received mobile imports worth more than Rs. 38 Arba, but this figure dropped to only Rs. 26 Arba last year.

According to customs data, a total of 39 lakh 35 thousand 367 mobile phones entered Nepal in the financial year 2079/80, with a value of Rs. 26 Arba 51 crore 47 lakh 20 thousand. The government collected revenue of Rs. 4.88 Arba 73 lakh 76 thousand from mobile phone imports.

Comparatively, in the previous year, Nepal imported 5,586,578 phones and telephone equipment, amounting to Rs. 38 Arba 6 crores 69 lakhs 87 thousand, with the government collecting revenue of Rs. 6.16 Arba 56 thousand from these imports.

The decline in mobile phone imports is attributed to the economic recession and the impact of open borders. The Federation of Nepal Mobile Business Association (FNMBA) stated that during the financial year 2078/79, the effects of Covid-19 led to reduced illegal imports through open borders. Increased statutory imports contributed to higher government revenue and import figures. However, last year, with the economy reopening and facing a recession, the import of mobile phones decreased.

The drop in mobile phone sales has been significant, with the market experiencing a 50 percent decline due to financial constraints. Consumers have become more cautious, purchasing phones priced between Rs. 12,000 to Rs. 30,000 only when necessary. Mobile phone users are now primarily using their devices for essential tasks and work.