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Credit to Lumbini Province’s Industrial Sector Rises 6.93 Percent

nabil bank

. Loans to the industrial sector of Lumbini Province have increased in comparison to the previous fiscal year (2081). According to the data released by Nepal Rastra Bank in the last fiscal year, the loan to this sector has increased by 6.93 percent.

Banks and financial institutions have invested Rs 141 TAG_OPEN_div_24.02 billion in loans in this sector till mid-July 2082. In the last fiscal year, Rs 141.03 billion was extended to the sector.

Out of the total industrial credit in the region till mid÷÷July, credit to industries related to agriculture, electricitygas, water, mines, and metal products has increased. Similarly, credit to non-food items and construction sector has decreased.

Industrial credit accounted for 24.43 percent of the total credit disbursed in the province as of Ashad 2 TAG_OPEN_div_20 082. Of the total industrial credit disbursed, the highest amount is 43.63 per cent in agriculture, forest and beverage production industries and the lowest is in electricity÷gas÷water industries (1.00 per cent).

The problem of regular power supply in this area in recent times, the industries have not been able to operate in full capacity due to the lack of easy availability of raw materials, so there is a challenge to create an environment to operate the industries in full capacity by managing this disruption.

At a time when the number of youths and skilled manpower in Nepal is increasing in foreign countries, it is challenging to stop the migration of youths and skilled manpower to domestic industries and use them as human resources, according to a study made public by the Nepal Rastra Bank.TAG_OPEN_div_16 Likewise, it is challenging to operate the industries and businesses in such environment as the changing unstable state system and continuous agitation programs have a negative impact on the industries.

} It is challenging to keep the morale of the entrepreneurs high as the economic slowdown, lack of market demand and lack of quality energy have affected the cement producing industries. It is challenging to operate the industrial zone in the province and the special economic zone in Bhairahawa in full capacity and increase import substitution and export.

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