Kathmandu, Nov. 1
Average capacity utilisation of the
industries in Karnali province stood at 30.98 per cent in Fiscal Year 2025/26,
down from 39.12 per cent in 2024/25.
According to the provincial economic
activities report published by the Nepal Rastra Bank, enterprise producing Radi
Pakhi (traditional woollen products) recorded the highest capacity utilisation
at 66.67 per cent, while processed milk industries recorded the lowest at 10.19
per cent.
"The industrial sector is estimated to
contribute 10.07 per cent to Karnali Province's gross domestic product (GDP) in
FY 2025/26. The gross value-added growth rate of manufacturing industries in
the province is estimated at 1.51 per cent, while that of the construction
sector is projected at 2.72 per cent," read the report.
According to the sample survey report, production
increased in industries manufacturing instant noodles (chowmein), other
household textiles, carpets, Radi Pakhi, sawn timber and electric bulbs.
However, production declined in industries manufacturing processed milk, grain
and animal feed, paper, and leather footwear.
The report noted that increasing the
capacity utilisation of existing industries, managing the cost and quality of
manufactured goods, and enhancing competitiveness against external industries
are major challenges of this sector in Karnali.
Likewise, safeguarding established
factories and industries is another challenge, as established businesses are
increasingly being displaced from the market due to capital shortages and
marketing difficulties.
According to the NRB report, quality
electricity supply, petroleum exploration project in Dailekh district,
potential for forest-based products can create economic opportunities in the
province.
"As this province holds vast potential
for energy-based, tourism, mineral, agricultural, livestock-poultry, medicinal
herb, and forest product-based industries, there is significant potential to
generate high employment through the establishment, development, and expansion
of such sectors," read the report.
Approximately 20 per cent of Nepal's total
forest area is in Karnali which offers strong prospects for forest
product-based industries while the petroleum exploration project opens door for
mineral-based industries.
The province has long been reeling from the
erratic electricity supply. However, the report noted that with the 132 kV
Kohalpur–Surkhet transmission line now operational, there is good potential for
a reliable electricity supply required to run medium- and large-scale
industries.
Loans to industries up
Loans mobilised by banks and financial
institutions to the industrial sector in Karnali increased by 25.63 per cent in
mid-July 2026 to Rs. 5.07 billion, compared to mid-July 2025. As of mid-July
2025, such lending had declined by 1.94 per cent year-on-year to Rs. 4.03
billion.
Industrial loans accounted for 7.52 per
cent of the total loans extended in the province. Among the districts, Surkhet
received the largest share of industrial lending, amounting to Rs. 2.86 billion
(56.51 per cent), while Dolpa received the smallest share, at approximately Rs.
13.9 million (0.28 per cent).
Karnali's economy is comprised of 31.52 per
cent agriculture, 10.07 per cent industry, and 58.41 per cent service sector.
Karnali is the smallest province in terms
of all economic indicators. By the end of FY 2025/26, the GDP of the province
is Rs. 277.25 billion with just 4.20 per cent contribution to the national
economy. Sudurpaschim province is its nearest peer with Rs. 466.89 billion GDP
and 7.03 per cent share in the national economy.
Bagmati province is at the top with Rs.
2423.12 billion GDP and 36.71 per cent contribution to the national economy.
Bagmati is followed by Koshi with Rs. 1043.12 billion, Lumbini with Rs. 936.72
billion, Madhes with Rs. 863.33 billion, and Gandaki Rs. 592.68 billion.
Published in The Rising Nepal on 2 November 2026.
No comments:
Post a Comment