Industries across Nepal used less of their production capacity in fiscal year 2024/25, with average capacity utilisation falling to 44.5% from 48.3% the previous year, according to Nepal Rastra Bank. While the tyre and tube industries operated at the highest level and vegetable ghee at the lowest, some sectors saw improvement, but many others declined. Capacity utilisation increased in the Madhes and Karnali provinces but dropped in most other provinces. Despite lower utilisation, bank lending to industries rose by nearly 12%, with most credit going to non food manufacturing, energy, and agriculture related industries, and Bagmati Province receiving the largest share.
Industrial Capacity Utilization Falls
