PM Oli inaugurates Nepal Pulp and Paper Industries, lauds push for self sufficiency

Gaushala, Mar. 6

Prime Minister KP Sharma Oli officially inaugurated Nepal Pulp and Paper Industries Pvt. Ltd., a new industry established in Ramnagar of Gaushala Municipality-1 in Mahottari district. The manufacturing industry is established and put into operation by the IME Group with an investment of Rs. 2 billion.

PM Oli unveiled the commemorative plaque and observed the paper production process along with the environment-friendly calcium carbonate production facility within the industry premises.

The industry has started commercial production of high-quality writing and printing paper, with an initial daily capacity of 75 tonnes. The first phase of production includes photocopy paper and paper used for exercise books, addressing the high domestic demand for such products. The locally manufactured paper is expected to reduce reliance on imported paper by supporting institutions like the Janak Education Materials Centre, which prints school textbooks and many other publication houses, reducing reliance on imported paper.

Addressing the inauguration programme of the Industries, PM Oli stressed the importance of industrial development for national economic growth. He highlighted that the establishment of this industry would save at least Rs. 7 billion annually by reducing the import of paper, thereby positively impacting the country’s trade balance.

He also noted that industries like this contribute to environmental sustainability by utilising waste paper as raw material.

"Job creation does not happen automatically and Nepal urgently needs to generate over 1,000 jobs per day, whereas the current rate is limited to around 250," PM Oli stated while underscoring the importance of providing economic opportunities for all capable citizens and ensuring a proper upbringing for children with access to quality food, education, and a clean environment.

Nepal's 69 per cent population is an active workforce and 45 per cent is youth. "To create jobs for them and promote socio-economic development, there is a need to promote and facilitate businesses and industries of all scales. Establishing industries not only modernises production but also contributes to societal transformation," PM Oli said.

Reflecting on past policy decisions, PM Oli acknowledged the mistake of shutting down the Bhrikuti Paper Mill and stressed the need for more such industries. He also urged for the establishment of mango processing industries in the Madhes Province - a mango-producing zone in the country - to produce a variety of products for both national and international markets.

PM Oli expressed concern over delays in the development of the Sunkoshi-Marin Diversion Multipurpose Project, which was expected to accelerate the prosperity of the Madhes region. “I had instructed the development of intake structures, tunnels, canal systems, and a powerhouse for the 32 MW electricity project. However, the progress has been so slow that there is no sign of its timely completion,” he stated. Urging for swift action, he remarked, “We don’t have the leisure to waste time talking—we must work to develop the country.”

Chandra Prasad Dhakal, Chairman of the Industries and the IME Group, said that the investment in the large industry aimed at curbing capital flight and youth migration by utilising local raw materials and creating employment opportunities.

He said that the initiative to recycle waste paper into high-quality paper represents a vital step towards Nepal’s self-sufficiency, economic growth, and sustainable industrial development. "In its first phase, the industry has commenced the production of photocopy paper, meeting a crucial demand in educational and administrative sectors. It has also begun processing carbon generated from the factory to manufacture essential chemical - calcium carbonate - for high-quality paper production.

The industry has already generated over 300 direct jobs, with 50 per cent of these opportunities prioritised for local workers. Dhakal called upon political, economic, and social stakeholders to support industrial and infrastructure development, highlighting the role of industries in economic prosperity.

"IME Group’s foray into manufacturing marks not only an expansion of the group’s business ventures but also a significant milestone in Nepal’s industrial journey. Nepal needs import substitution and the establishment of employment-oriented industries to prevent the migration of workers to foreign labour markets," said Dhakal who is also the President of Nepalese Chambers of Commerce and Industry (FNCCI).

Appreciating the recent government efforts to create a more investment-friendly environment, he urged authorities to further streamline policies, ensure investment security, and foster collaboration between the private sector and the government to sustain economic growth.

Speaking on the occasion, Sharat Singh Bhandari, Minister for Labour, Employment and Social Security, also said that the ratification of the ordinances announced by the government to implement reforms in the economic and business sectors will facilitate the industrial sector and will draw more domestic and foreign investment.

"About 500,000 youth enter the labour market annually but we are creating only 100,000 jobs per year. So, we need many more industries like this to create direct and indirect employment for youth who otherwise are migrating abroad in search of work," said Minister Bhandari.

He also underscored the need to implement better policies and programmes to utilise the knowledge and skills of the returnee migrant workers.

According to him, the government is serious about creating jobs domestically and an internal employment department has been established under the Ministry of Labour, Employment and Social Security. Madhes is suitable for all sorts of industries from agricultural processing to industrial manufacturing, said Minister Bhandari.

Likewise, Shatish Kumar Singh, Chief Minister of Madhes Province, expressed his hope that Nepal Pulp and Paper Industries will supply paper equivalent to 40 per cent of domestic need and will help in economically empowering women and youth of this area and the province.

"A large manufacturing industry can have a huge impact on the economic development of any country," said CM Singh. "We must work to upgrade the quality and quantity of agricultural products to strengthen the economy and society from the grassroots. It will ensure that the large industries will get enough raw materials."

He also urged the federal government to offer tax incentives and quick connection to electricity and other basic industrial amenities. Although the large industry facilitation falls in the federal domain, the provincial government will extend utmost support in logistics and other areas, he maintained.

According to CM Singh, the trade unions at times have turned into instruments of political interest groups and disturbed the industrial environment.

 Published in The Rising Nepal daily on 7 March 2025.