Industries in Karnali running at 31% capacity
Summary
Industries in Karnali province operated at an average 30.98 percent capacity in FY 2025/26, down from 39.12 percent a year earlier. The Nepal Rastra Bank report says industrial lending rose sharply, while electricity supply, capital shortages, and marketing difficulties remain major challenges.
Key Points
- Average capacity utilisation of industries in Karnali fell to 30.98 per cent in FY 2025/26 from 39.12 per cent in 2024/25.
- Radi Pakhi producers had the highest utilisation at 66.67 per cent, while processed milk industries had the lowest at 10.19 per cent.
- Industrial loans in the province rose 25.63 per cent year-on-year to Rs. 5.07 billion by mid-July 2026.
- The NRB says Karnali has potential in energy, tourism, minerals, agriculture, livestock, herbs, and forest-based industries, but faces infrastructure and competitiveness challenges.
