Kathmandu: A recent study conducted by Nepal Rastra Bank highlights a concerning trend in the country’s industrial sector, indicating an average capacity utilization of 50.58% during the last fiscal year 079/80. This reflects a decrease of 3.84 percentage points compared to the preceding year 078/79 when the capacity stood at 54.43%.

Notably, the Karnali region experienced the most substantial decline, with a staggering 24.44% drop in capacity utilization. From 76.6% in 078/79, the industrial capacity in Karnali dwindled to 52.16% in the past fiscal year. Madhesh province also witnessed a significant decrease of 7.27 percentage points, falling from 61.52% to 54.25%. Similarly, Lumbini’s industrial capacity saw a decline of 5.54 percentage points.

These figures underscore the challenges faced by industries across the nation, prompting a closer examination of factors influencing the decline in capacity utilization and potential strategies to revitalize the industrial sector.