Improvement in Industrial Capacity of Karnali Province

The preliminary estimate for the current fiscal year predicts an economic growth rate of 2.94 percent for Karnali Province. The average capacity utilization of industries in Karnali Province has increased to 44.25 percent compared to the previous year. According to a study by Nepal Rastra Bank, the number of tourists entering Karnali Province has decreased by 50.07 percent. Kathmandu, 29th Jestha. The capacity utilization of industries in Karnali Province has shown improvement. While it was 40.22 percent last year, the average capacity utilization of these industries has now reached 44.25 percent. Up to mid-January of the current fiscal year, paper manufacturing industries in Karnali utilized their full capacity at 100 percent, whereas the industries producing electrical wires and cables under the category of electrical equipment had the lowest capacity utilization at 11 percent, according to Nepal Rastra Bank’s study.

Among industrial products, production of grains and livestock, instant noodles, other textiles, carpets, sawn wood, paper, and electrical wires and cables has increased, while processed milk and leather footwear industries have seen a decline in production. The preliminary estimate for Karnali Province’s economic growth rate for fiscal year 2082/83 is 2.94 percent. The contribution of agriculture, industry, and service sectors to the province’s total Gross Domestic Product (GDP) is projected at 31.52 percent, 10.07 percent, and 58.41 percent respectively. Up to the end of mid-January of the current fiscal year, the area covered by food crops in Karnali has increased by 0.37 percent compared to the same period last year.

Among major food crops, the area covered by paddy has decreased by 2.94 percent, whereas maize, wheat, millet, barley, and buckwheat have seen area increases of 0.31, 0.25, 0.25, 11.17, and 2.49 percent respectively. Similarly, areas covered by vegetable and horticultural crops have increased by 0.25 percent, and fruit cultivation areas have expanded by 4.51 percent. Overall agricultural crop production in Karnali slightly declined by 0.05 percent up to mid-January of the last fiscal year, but within this total, the production of food, cash, and other crops increased by 2.06 percent.