NRB study: Industrial capacity use at weakest level since earthquake and Covid

Nepal's manufacturing industries have not been able to utilize even half of their capacity. According to Nepal Rastra Bank's economic activity study report, the average capacity utilization of industries was limited to about 42 percent in the first six months of fiscal year 2082/83.

This is the weakest level since the earthquake and the Covid period. The report states that, apart from periods of natural and human-caused disasters, capacity utilization over the past decade had remained above half.

Shrinking market demand, demographic conditions, and competition from imported goods are considered the main reasons for the decline. According to Rastra Bank, industrial capacity utilization has been gradually falling.