Far-west sees rise in industrial credit but sharp decline in production

Dhangadhi: An economic activity study has revealed that despite an increase in industrial credit in the Far West Province, production has seen a significant decline. According to the annual report of Nepal Rastra Bank for the fiscal year 2081/82, industrial credit in the province increased by 4.37 percent, yet production fell sharply: wheat flour by 65.09%, sugar by 60.22%, bricks by 42.86%, soap by 23.82%, rice by 15.25%, rosin by 6.86%, concrete by 6.59% and mustard oil by 4.35%.

Although overall credit demand weakened due to a sluggish market, industrial credit reached Rs 26.72 billion by Asad 2082, marking a 4.37% rise compared to Asad 2081. Credit outflow had decreased by 4.79% during the same period last year. Industrial credit accounts for 16.97% of the province’s total credit.

In terms of credit structure, industries related to electricity, gas and water recorded the highest growth at 67.55%, while the mining industry saw a decline of 37.83%. The report indicates that agriculture, forestry and beverage industries hold a 42.71% share, non-food industries 26.05%, construction industries 20.21%, metal, machinery and electronic industries 8.92%, electricity-gas-water industries 1.63% and mining industries 0.48%.

Kailali holds the largest share of total industrial credit at 79.13%, followed by Kanchanpur at 15.73%. Dadeldhura accounts for 1.54%, Doti 1.03%, Achham 0.60%, Baitadi 0.59%, Darchula 0.48% and Bajhang 0.46%. Bajura has the lowest share at 0.44%.