Nepal: Officials to modify government office working hours from May 15 amid import controls to ease foreign exchange reserve shortage

Event

Nepal has announced modified working hours for the public sector from May 15 until further notice. Government offices will open 09:30-17:30 Monday-Friday; altered hours of 09:30-16:30 will apply during winter from mid-November to mid-January. The current operating hours are 10:00-17:00 daily except Saturday. Authorities have introduced the measure as part of efforts to control fuel expenditure amid dwindling foreign exchange reserves. Officials had earlier banned imports of ten nonessential items such as alcohol, diamonds, tobacco, toys, and most automobiles through at least July 15.

The Federation of Contractors' Associations of Nepal (FCAN) is on strike since late April, denouncing price hikes for construction materials; the action has stalled over 3,500 infrastructure projects nationwide. Additional demonstrations by civil, political, labor, and trade groups are probable over further austerity measures. Inflation and shortages affecting essential items and raw materials for business are especially likely to trigger protests and strikes. Disruptive protests are most likely in major cities like Kathmandu. Popular protest venues include government buildings, public squares, major intersections, and political party and trade union offices. Hundreds of people may attend larger rallies.

Authorities will likely monitor gatherings and may cordon off roadways near events, causing localized transport disruptions. Police may use force to disperse protests, including firing tear gas and using water cannons. Significant violence may prompt localized business disruptions.

Context

Nepal is facing declining foreign exchange reserves fueled by low tourism income due to the COVID-19 pandemic, reduced remittances from overseas Nepalis, as well as rising imports. Officials have stated current reserves will service imports for appoximately six months as the government attempts to resolve the situation.

Advice

Avoid gatherings due to possible violence. If clashes break out, leave the area immediately. Allow additional travel time near protests. Monitor trusted local media for updates on demonstrations as organizers may not announce them in advance. Ensure contingency plans account for shortages of essential items, as well as operational disruptions due to work stoppages and government restrictions. Heed all official instructions.