Income of industries up by 27%, credit utilisation down

Kathmandu, June 20: The Confederation of Nepalese Industries (CNI) has released the third issue of the Industrial Status Report after studying the industrial activities of Nepali industries.

Detailed statistics of manufacturing and service sector industries in the second quarter of the current fiscal year 2021/22 have been included in the report. The report shows that industries exploited 71 per cent of their total production capacity during the period.

The report shows that the income of the industry has increased by 27.1 per cent in the same period of the current fiscal year as compared to the second quarter of the previous fiscal year 2020/21.

According to the report, capacity utilisation of the business seems to be improving.

During the period under study, manufacturing industries paid an average interest of 9.4 per cent (8.6 per cent in the same period last year) and service industries paid an average of 9.1 per cent.

The study found that manufacturing industries borrowed 43.8 per cent of their working capital from banks and financial institutions.

It had borrowed 54.1 per cent in the corresponding period of the previous year.

According to the report, the industry used 10.3 per cent less credit during the review period than the same period last fiscal year.

Of the participants in the study, 65.5 per cent said they were ready for new investments.

The study found that 64.4 per cent of industries are still using generators due to power supply problems.

The industrial status report of this issue has been prepared focusing on the budget of the government.

The report includes budget preparation and implementation process, comparative study and key suggestions given by the Confederation of Nepalese Industries in the budget for the current fiscal year, said the CNI.

CNI president Vishnu Kumar Agrawal said that the report also showed how the private sector was working as a think tank.

He said that the Confederation was not only giving suggestions but also trying to present a realistic picture of the industry through this report.

President Agrawal said that the CNI was working by giving priority to the development of the industrial sector and job creation.

He said that additional areas will be included in the study and will be expanded.

Vice President of CNI Birendra Raj Pandey said that the report would provide information about the situation of the industry and it would be published every quarter.

He said such reports will help boost the credibility of the private sector.

This is the first time that the Confederation has prepared such a report in the absence of periodic data on Nepal’s industrial sector.

The research cell under the Confederation has prepared the report based on the survey with the industries.

The Confederation is confident that this report will help in formulating fact-based policy in the country.

The report will be useful as an important study material for all stakeholders interested in the industry, including policy makers, it said.
-The Rising Nepal

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