Construction Sector Stalls Amid Severe Shortages and Soaring Prices of Materials and Fuel
Summary
Nepal's construction sector faces collapse due to severe shortages and soaring prices of materials, fuel, and gas, compounded by internal elections and international conflict. Entrepreneurs demand a government-declared construction holiday to relieve stresses caused by budget cuts and market exploitation.
Key Points
- The construction sector in Nepal is on the verge of collapse due to severe shortages and skyrocketing prices of materials, fuel, and gas.
- Capital and development expenditure have contracted sharply, with only about 19% of the development budget spent so far, and prospects for increase are dim.
- Fuel supply disruptions, especially linked to the Gulf war, have caused material shortages and inflated costs, leading to unsustainable project expenses.
- The Construction Entrepreneurs' Federation demands a government-declared construction holiday and special measures to support the sector and prevent bankruptcies.
