Kathmandu, January 29
The Economic Activities Study Report published by the central bank recently shows that capacity utilisation of Nepali industries fell to 57.1 per cent in fiscal year 2018-19 compared to 59.7 per cent in the previous fiscal year.
Dwindling capacity utilisation of industries hints that the production of goods from domestic industries is inefficient. However, fall in capacity utilisation in the industrial sector amid implementation of favourable policies, regular electricity supply and end to frequent strikes from political parties and labour unions have raised eyebrows.
“The capacity utilisation of cement industries came down drastically in the review year as a number of new cement industries started production during the year. As a result, the overall capacity utilisation of the industrial sector came down in 2018-19,” reads the report.
As per the NRB report, the capacity utilisation of cement industries fell to 40.4 per cent in 2018-19 compared to 74.6 per cent in the previous fiscal year.
While capacity utilisation of beer industries was recorded at highest level of 99.7 per cent in the review period, the capacity utilisation of tyre industry was at the lowest of 15.8 per cent, as per NRB.
The Economic Activities report of the central bank was prepared based on the study of major industries in seven economic blocs of the country — Kathmandu, Biratnagar, Janakpur, Birgunj, Pokhara, Siddharthanagar, Nepalgunj and