KATHMANDU: Political
instability and acute power shortage have not dampened investors´ mood
if latest data of Department of Industry (DoI) is anything to go by.
Registration of new industries has doubled over the first nine months of
fiscal year 2012/13, compared to figures of the same period of last
year.
Statistics of DoI shows 298 firms were registered during the period, up from 184 registered in the corresponding period of the last fiscal year. “New investment commitment amount has increased by 78 percent to Rs 81.32 billion during the period,” the statistics shows.
If the investment commitment is anything to go by, it will create 23,799 new jobs in the country.
“We don´t have statistics of the approved investment due to lack of human resource at the department,” a DoI official told Republica.
Almost 50 percent of the newly registered firms are of small scale. “Only 86 large and 64 medium scale firms were registered in the review period,” the statistics shows.
Industrialists, however, have termed the healthy rise in the registration of new firms as unnatural. “Gauging the existing business doing investment in the country, the trend is somewhat unnatural,” Pashupati Murarka, vice president of Federation of Nepalese Chambers of Commerce and Industry (FNCCI), said. “Looking at the situation of the country, I don´t think these firms will inject fresh investment immediately. They must be in wait and watch mood.”
DoI officials do not have any clue why registration of firms increased despite economic slowdown in the country.
According to the statistics compiled by the Ministry of Finance (MoF), the contribution of manufacturing sector in gross domestic product (GDP) is stood at 6.2 percent in 2011/12 - the lowest in the last decade.
Source: myrepublica.com, 18th April 2013
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Statistics of DoI shows 298 firms were registered during the period, up from 184 registered in the corresponding period of the last fiscal year. “New investment commitment amount has increased by 78 percent to Rs 81.32 billion during the period,” the statistics shows.
If the investment commitment is anything to go by, it will create 23,799 new jobs in the country.
“We don´t have statistics of the approved investment due to lack of human resource at the department,” a DoI official told Republica.
Almost 50 percent of the newly registered firms are of small scale. “Only 86 large and 64 medium scale firms were registered in the review period,” the statistics shows.
Industrialists, however, have termed the healthy rise in the registration of new firms as unnatural. “Gauging the existing business doing investment in the country, the trend is somewhat unnatural,” Pashupati Murarka, vice president of Federation of Nepalese Chambers of Commerce and Industry (FNCCI), said. “Looking at the situation of the country, I don´t think these firms will inject fresh investment immediately. They must be in wait and watch mood.”
DoI officials do not have any clue why registration of firms increased despite economic slowdown in the country.
According to the statistics compiled by the Ministry of Finance (MoF), the contribution of manufacturing sector in gross domestic product (GDP) is stood at 6.2 percent in 2011/12 - the lowest in the last decade.
Source: myrepublica.com, 18th April 2013
You might also like:
Nepal Inflation at 10.2 percent in March 2013
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