The average capacity utilization of industries in Karnali Province has decreased by 3.78 percent in the last fiscal year, according to the annual economic activity report published by Nepal Rastra Bank (NRB).
According to the report, the average capacity utilization of industries in the province stood at 48.51 percent in the fiscal year 2023/24. This marks a decline from the 52.29 percent recorded in the previous fiscal year.
Nepal Rastra Bank derived the data from the average capacity of selected industrial samples in the province during the review period.
Despite the overall decline, the report highlights that certain industries performed exceptionally well. The capacity utilization of plastic goods industries reached 100 percent, making it the highest-performing sector. In contrast, industries involved in flour production, categorized under grain and animal feed, operated at only 15 percent of their production capacity during the same period.
Meanwhile, the capacity utilization of industries is declining across the country due to the slowdown in economic activities, the NRB report added.
The slump in economic activities due to the Covid-19 pandemic, Russia-Ukraine war and lack of liquidity in the financial sector has affected the capacity utilization of the industries.
Overall, only 43.07 percent of the average capacity of industries across Nepal was utilized in the first six months of the review year, the study revealed.
