KATHMANDU, Nov 1: The average capacity utilization of industries in Sudurpaschim Province is limited to 51.29 percent.
The study report on the provincial economic situation carried out by Nepal Rastra Bank (NRB) shows that capacity utilization was found to be relatively higher in the GI wire, brick, and edible oil industries. In contrast, industries producing soap, rosin, and biscuits utilized a smaller portion of their available capacity.
In the last Fiscal Year (FY), the production of concrete fell by 52.94 percent, soap by 45.74 percent, and GI wire by 6.02 percent. Conversely, the production of wheat flour increased by 137.17 percent, sugar by 134.67 percent, bricks by 100 percent, rosin by 29.48 percent, rice by 7.39 percent, and mustard oil by 1.27 percent.
Industrial capacity utilization rate improves
Meanwhile, banks’ credit flow to the agricultural sector was found to have decreased in the FY 2025/26, resulting in an increase of banks’ credit flow in the industrial sector. Credit expansion to the agricultural sector decreased by 2.13 percent to Rs 15.62 billion in the last FY compared to that in the previous year. In contrast, credit extended to the industrial sector increased by 3.72 percent, reaching Rs 27.71 billion.
The industrial sector accounts for 16.96 percent of the total credit extended within the province. Within industrial credit, the share of industries related to agriculture, forestry, and the production of beverages is 40.23 percent.
As per the NRB’s preliminary estimate, the province's economic growth rate based on consumer prices remained at 3.28 percent in the review year. The growth rates for the agriculture, industry, and service sectors were estimated to be 2.8 percent, 2 percent, and 2.9 percent, respectively.
The gross domestic product of Sudurpaschim Province is estimated to have reached around Rs 463 billion.
In the FY 2025/26, the Sudurpaschim Provincial government spent Rs 20.73 billion out of the allocated Rs 33.47 billion. This represents 61.94 percent of the total budget.
