. The country’s construction sector is in a serious crisis due to the shortage of construction materials, fuel and gas, as well as the steep price hike. In the last two months, development and construction work have come to a standstill due to the instability in the market due to the influence of elections domestically and the intensifying West Asian conflict at the international level.

TAG_OPEN_p_13 According to contractors, the situation is getting worse as the government has not been able to prioritise development works. Only 19 per cent of the development budget has been spent so far as the government has not been able to spend capital expenditure. Entrepreneurs say that the pace of expenditure is unlikely to accelerate in the coming days as well.

} There have been indications that the budget of the development ministries may be cut due to the pressure and contraction in the economy, which is expected to have a further impact on the construction sector.

Internationally, fuel supplies are being disrupted due to the escalating conflict in the Middle East.TAG_OPEN_p_11 The supply of fuel and construction materials has been weak for the past two weeks, which has not only slowed down but also brought some projects to the brink of closure.

There is an acute shortage of materials such as bitumen and sticks, which are considered essential for development projects. Traders have also alleged that some suppliers have increased prices by creating artificial shortages amid supply uncertainty. The price of such items has increased by up to 100 percent in the local market.

Entrepreneurs have complained that the gas shortage has further hampered the construction work and it is difficult to get the workers to work regularly. They claim that the construction sector is in crisis after the administration banned the sale of fuel through bottles.

Contractors have demanded a special relief package from the government after the industry was completely under pressure from this situation.TAG_OPEN_p_8 They have also demanded immediate declaration of a ‘construction holiday’ for cost escalation and risk management.

Overall, the twin effects of domestic policy instability and external supply crisis have pushed Nepal’s construction sector to a critical juncture.TAG_OPEN_p_7