Sudurpaschim industries operate at 51% capacity
Summary
Industries in Sudurpaschim Province operated at just 51.29 percent of installed capacity in fiscal 2025/26, even as production rose in most surveyed sectors and bank lending to industry increased modestly. The Nepal Rastra Bank report highlights weak infrastructure, low productivity and the need for modern technology to boost industrial growth.
Key Points
- Industries in Sudurpaschim Province used only 51.29 percent of their installed capacity in fiscal 2025/26, according to a Nepal Rastra Bank report.
- Production increased in most surveyed industries, with wheat flour, sugar and bricks recording the strongest gains, while concrete, soap and GI wire output declined.
- Bank lending to the industrial sector in the province reached Rs. 27.71 billion by mid-July 2026, up 3.72 percent year-on-year.
- The report says weak infrastructure, limited technology adoption and low productivity are major obstacles to industrial expansion in the province.
