Investment in Productive Industries Declining

November 28: The government has announced of  increasing  productivity of industrial sector, however, investment in the sector is in decreasing trend. The number of productive industries registered in the Industrial Department during the current FY compare to the last FY shows the decreasing trend in  the number and investment in the industrial sector. According to the department, a total of Rs 5.17 billion investment were approved on 49 industries including 11 large, medium 17 and 21 small productive industries during the first quarter of the last FY. However, a total of Rs 4.77 billion investment has been approved on 44 industries including 15 large, 14 medium and 15 small industries in the same period of the current FY.

Earlier, the government, in its 14^th Periodic Plan, announced to increase the overall industrial sector by 10.6 per cent while of the productive industries by 6.1 per cent within the next three years. Yet, the government's failure in providing special priority to the sector challenges the investment target.

"Industrial sector has not been able to attract the investment due to the lack of fundamental groundwork required for the operation of productive industries," said Hari Bhakta Sharma, President of Confederation of Nepalese Industries (CNI). "Industries cannot run without feasible policies, power management and construction of infrastructure. Business environment should be made favourable in order to attract investment so that to generate employments and balance the trade of the nation. For that, not only private sector but political parties, government and local people need to contribute equally," he added.