It can be totally true. I just came back from Nepal last week and I happened to look into sunglasses at Kathmandu Mall. One of the Police sun glass was about 6k. There's always bargaining in Nepal, so final price depends on how much people bargain. I ended up buying a RayBan rather than Police at Rs 4500. And it wasn't reading glass. To put prescription lens into glass cost even more. So I wouldn't be surprised if he says 7k. Thats reasonable if the quality is good.
Branded prescription glass in USA costs more than 300 dollars so be happy about it.