Expected reforms could not take place in demand side, CNI report concludes

KATHMANDU: A study carried out by the Confederation of Nepalese Industries (CNI) has stated that there has not been expected growth in the demand side of the market.

The study report of the CNI has been released at a time the government claimed most of the indicators of economy were positive and the market was becoming vibrant.

The CNI study report stated that expected reforms in the market could not happen due to a shrink in the consumers’ demand.

The comparative survey study conducted based on the first quarters of the last three fiscal years among the enterprises revealed that overall demand side of the market was weak, price of raw materials was on the rise and there has been decrease in the import of the industrial raw materials.

Releasing the report here Monday, CNI President Rajesh Kumar Agrawal argued that the confidence level of the industrialists has weakened since the last fiscal year due to unfavourable status of economy.

As per the survey, the overall demand side of the industrial output has decreased 12.06 per cent in the review period of the current fiscal year compared to the same period of the last fiscal year.

Likewise, the demand of the industries has shrunk 36.93 per cent and the transaction volume has decreased 7.46 per cent.

In the first quarter of the current fiscal year, 55.32 per cent industrialists have postponed their plans to invest as revealed by the survey.

Based on such facts, the CNI has said that the economic condition has not improved in the country as claimed by the government. RSS