Nepal’s State-Owned Industries Show Signs of Revival, Says PM Balendra Shah

Nepal’s Prime Minister Balendra Shah has claimed that the country’s state-owned industries are showing signs of revival, following criticism from lawmakers over the government’s handling of the economy.

Responding to questions from lawmakers in the House of Representatives, PM Shah said that efforts to revive and make competitive the country’s national industries have been a priority for his government since its formation.

He cited the example of Nepal Pharmaceuticals Limited, which has reportedly sold medicines worth Rs 23.8 million in the past four months, after obtaining the World Health Organization’s ‘Good Manufacturing Practice’ (GMP) certification.

The company has set a target of selling medicines worth Rs 30 million in the current fiscal year and aims to produce 98 types of free medicines within the next three years, as part of the government’s 100-point reform agenda.

Other Industries Showing Signs of Revival

PM Shah also mentioned that Hetauda Textile Industry, which has been closed for a long time, has started trial production under the management of the Nepal Army.

He added that Nepal Airlines has seen an increase in revenue, with the company earning Rs 6.27 billion in the past four months, up from Rs 5.17 billion in the same period last year.

The airline’s seat occupancy rate has also increased to 86%, up from 80% in the same period last year.

Additionally, the Prime Minister said that the Dairy Development Corporation (DDC) has prioritized the payment of dues to farmers, reducing the payment cycle from eight months to two-three months.

The DDC has also increased the incentive for farmers by Rs 1 per liter of milk and has seen a 35% increase in daily sales.

PM Shah also mentioned that the Singh Durbar Vaidyakhana has seen a four-fold increase in its business, with the production and marketing of Ayurvedic medicines worth Rs 11.16 million since the government’s formation.

The Vaidyakhana aims to produce 150 types of Ayurvedic medicines in the current fiscal year and become self-sufficient in the production of 35 types of medicines that are currently distributed for free.