Government to lift moratorium on vehicle imports and housing construction loan

During the launch of the Economic Stimulus Programme today, the prime minister announced that the moratorium on housing construction loan, as well as vehicle imports, will be lifted on July 1^st and August 18^th, respectively. According to the prime minister, the Royal Monetary Authority made this decision after observing improvements in the country’s economy.

The Ministry of Finance imposed a moratorium on the import of selected vehicles in 2022. The moratorium has since been extended three times.

According to the finance ministry, the extensions were made to protect the country’s foreign currency reserves.

Figures from the central bank show that as of December last year, the total external reserve, which includes Indian Rupees and monetary gold, was almost USD 600 M.

Similarly, the moratorium on housing construction loan was implemented in June last year and was extended in January this year.

Prime Minister Tshering Tobgay said that the Royal Monetary Authority has decided to lift these moratoriums, considering the current economic situation in the country.

“The RMA decided to lift the moratorium because they believe the situation has improved. While there are still concerns to be aware of, it is important to understand that the moratoriums would not be lifted if there were significant risks involved.”

However, the prime minister clarified that the announcement does not mean that people can immediately begin ordering vehicles.

“Vehicle imports will only be permitted after August 18^th. This precaution is in place due to the possibility that import restrictions might be re-imposed later on. Therefore, any orders for vehicles can only be placed starting from the 18^th of August.”

He added that studies are currently underway to determine the number of vehicles Thimphu Thromde can accommodate.

The prime minister said that the research aims to identify necessary plans and policies to manage the increased number of vehicles effectively.

These studies, he said, will be completed before the moratorium is lifted.

Dechen Choden

Edited by Sherub Dorji