Kathmandu – A study conducted by the Nepal Rastra Bank (NRB) has identified a shortage of skilled workers, inadequate raw materials, and limited market access for manufactured goods as major obstacles to Nepal’s industrial development.
According to the central bank’s report, industries across the country continue to face multiple challenges, including insufficient capital, high production costs, outdated technology, low productivity, brain drain, and difficulties in managing environmentally friendly industries.
The study emphasizes the need for accelerated development of industrial infrastructure, increased production and productivity, reliable supply and management of raw materials, improved competitiveness of domestic products, and diversification of export-oriented goods to strengthen Nepal’s industrial sector.
The report particularly highlights challenges faced by industries in Karnali Province, where limited access to capital and difficulties in marketing products have affected industrial sustainability.
A growing trend of youth migration for foreign employment has also been identified as a key reason behind the shortage of skilled and technical manpower required by industries. The outflow of workers has left many businesses struggling to find qualified employees, slowing industrial expansion and productivity.
Despite these challenges, the report points to significant opportunities in Madhesh Province, particularly in the agricultural sector. As a major producer of rice, wheat, maize, sugarcane, oilseeds, fruits, vegetables, and dairy products, the province has strong potential for the expansion of agro-based industries.
The study suggests that food processing plants, sugar mills, dairy industries, edible oil factories, rice mills, and animal feed industries could play a crucial role in boosting industrial growth, creating jobs, and increasing value-added production in the region.
The NRB report concludes that addressing workforce shortages, improving industrial infrastructure, and strengthening domestic production capacity will be essential for Nepal to achieve sustainable industrial development and reduce its reliance on imports.
