The manufacturing sector in Nepal, earlier ravaged by the pandemic, has now almost returned to near pre-pandemic levels as the result of a boost in demand due to the festive season and the ramped-up vaccination
The manufacturing sector in Nepal, earlier ravaged by the pandemic, has now almost returned to near pre-pandemic levels as the result of a boost in demand due to the festive season and the ramped-up vaccination. Except for tourism and transport, all sectors are operating at near the pre-pandemic level.
“Figures related to industrial production have not come in yet, but almost all factories are operating at full capacity,” Dinesh Shrestha, the vice-president of the Federation of Nepalese Chambers of Commerce and Industry, was quoted as saying by The Kathmandu Post.
In the last fiscal, ending mid-July, the country’s economy contracted by almost 2.1 percent-- a first in the last four decades. On the policy front, several sectors are waiting for clarity from the government. For instance, entrepreneurs in the tourism and transport sectors are seeking extensions in interest payments.
“The transportation sector, too, has slowed down as there is little movement of people," Shrestha said. Cottage and small scale entrepreneurs that they are not able to get the promised interest subsidy easily.”
The construction industry has not yet recovered from the slowdown in demand due to the heavy rain this season.
In a recent survey report on the impact of Covid-19 on the economy, the central bank said industry and business were in position this year mid-April compared to the same period last year. Industrialists, however, are still facing problems in getting refinance and subsidized loans offered by the government to ward off the pandemic effects.
The revival in the tourism industry is also important, considering the reliance of thousands of people in the country’s northern part on the sectors. Additionally, the sector also brings foreign direct investments which had almost dried to zero after the pandemic.