Nepal is on the verge of an unprecedented economic catastrophe as the coronavirus pandemic continues to unfold.
The sheer scale of disruption from the pandemic is unprecedented in Nepali history.
According to the Federation of Nepali Chambers of Commerce and Industry (FNCCI), around 400,000 domestic and small enterprises across the country are on the verge of displacement.
These industries are likely to be closed due to low operating capital, lack of human resources, and shrinking markets triggered by the nationwide lockdown.
According to the Industry and Business Council under the FNCCI, around 90% of the industries with working capital of up to NPR 2 million were closed.
Most of the small and cottage industries have been closed, the capacity of medium-scale industries has dropped to 30%, and large-scale industries are on the verge of crisis.
“Even though some of the city’s industries have refined themselves according to the times, almost all the enterprises outside the valley are facing problems,” Rita Singh, President of the Federation of Women Entrepreneurs of Nepal.
According to the Economic Census 2075, there are 923,356 industries and business establishments in operation across the country. Among them, more than 400,000 are domestic and small-scale industries.