There is contraction of demand in manufacturing sectors: CNI

Kathmandu, Feb. 8

Confederation of Nepalese Industries (CNI) has said that there has been a contraction in demand from 20 to 80 per cent in various manufacturing sectors.

In a meeting with Vice President of National Planning Commission (NPC), Dr. Min Bahadur Shrestha, on Wednesday, the CNI said that it has caused a big shock in the industry and construction sector as well.

Emphasising timely completion of development and construction projects and at the specified cost, President of CNI Vishnu Kumar Agrawal who was leading the delegation to the VP of the NPC, said that for that, the practice of awarding projects at 'low bidding' should be reformed.

Similarly, he requested to open Power Purchase Agreement (PPA), to allow the private sector to construct and operate Shaktikhor and Mayurdhap industrial areas which are not being operational on the model of India's Rudrapur Industrial Zone.

The meeting had discussed the challenges of the economy, solutions, as well as problems of small and medium industries and construction industries.

On the occasion, CNI also submitted a concept of 'Rebooting Nepali Economy' with clear steps to be taken immediately to give speed to the economy of the country which is in a challenging situation.

It also suggested measures that can be taken immediately by giving priority to the financial sector (liquidity crisis and high interest rate), industrial promotion, infrastructure, tourism, energy and information technology sector to give speed to the economy.

Vice Chairman Dr. Shrestha, said that the government is focusing on the measures to improve the economy.

He pledged necessary interventions to increase domestic production and employment. Dr. Shrestha said that there is a need to control revenue leakage and bring in more remittances through formal channels to improve the economy.

He said that the private sector should be promoted as the backbone of the economy by doing concrete and result-oriented work for the improvement of the economy.

 Published in The Rising Nepal daily on 9 February 2023.