Nepal’s industrial slowdown deepens as new factory registrations fall
Summary
Nepal's industrial sector is facing a downturn with a decline in new factory registrations, reduced factory utilization, and slower industrial credit growth amid ongoing structural challenges and weak investment climate.
Key Points
- New industry registrations in Nepal fell by 120 in the first half of the current fiscal year compared to the previous year.
- Factory utilization decreased to 42.11 percent from 42.94 percent, with garment factories showing the highest utilization.
- Industrial credit growth slowed to 7.99 percent, down from 17.66 percent during the same period last year.
- Structural issues such as policy uncertainty, land and labor challenges, and high production costs continue to hamper Nepal's industrial development.
