The average capacity utilization of industries in Bagmati Province has increased by 5 percentage points in FY 2021/22. The 'Bagmati Economic Activities Report', published by the Nepal Rastra Bank (NRB) shows average capacity utilization of industries in the province stood at 47.4 percent in the last fiscal year which was 42.4 percent in FY2020/21. The NRB has been publishing reports on the economic activities of all seven provinces of the country in recent days. The NRB report says the noodle industry had the highest capacity utilization in the last fiscal while it is lowest in the pharmaceutical industry. In FY 2021/22, the production of soft drinks, clothing, paints, medicine, shoes, and electricity increased in the province while the production of milk, animal feed, noodles, cigarettes, garments, bricks, and cement decreased.

Major industries in Kathmandu, & Makwanpur

According to the report, major industries in the province include footwear, carpets, pashmina, felt goods, animal feed, ready-made garments, decorative goods, noodles, biscuits, beverages, bricks, pharmaceuticals, and cement industries with most of them located in the Kathmandu Valley and Hetauda, Makawanpur.  In FY 2021/22, a total of 131 industries were registered in the province. Of them, 26 were in the manufacturing sector, 9 in agriculture and forestry, 9 in energy, 11 in information and technology, 2 in infrastructure, 1 in mineral products, 38 in services, and 35 in tourism. The report states that no industries were registered in Rasuwa, Ramechhap, and Sindhuli districts in the last fiscal year. BFIs disbursed 842.66 billion in loans to industries According to the NRB report, banks and financial institutions (BFIs) disbursed Rs 842.66 billion in loans to the industries in the last fiscal year. The loan disbursement of the BFIs declined by 6 percent in FY 2021/22. Such disbursement had increased by 25.7 percent in FY 2020/21 to reach Rs 896.42 billion. Of the total loan disbursement, the share of the industrial sector was 32.1 percent. The BFIs disbursed the highest loans to the industries in the Kathmandu district in the last fiscal. A total of Rs 757.05 billion in loans (89.8 percent) were given to the industries operating in the Kathmandu districts. The Rasuwa districts had the lowest loan disbursement of Rs 26 million (0.03 percent). As the central office of most of the industrial establishments is in Kathmandu, it is natural to have the highest loan disbursement in the Kathmandu district. In FY 2021/22, loan disbursement to the mining and production industries increased by 113.1 percent while that of the construction industries decreased by 49 percent. According to the NRB report, loans to the electricity, gas, and water industries surged by 20.2 percent, metal products, machinery, and electronic industries by 10.4 percent, and non-food products production industries by 9.8 percent. Services sector gets the highest loan disbursement As Bagmati Province's economy is dominated by the services sector, the BFIs' loan disbursement to this sector was higher than the industrial sector. Of the total loan disbursed by the BFIs, 39.9 percent was received by services sector businesses. In FY 2021/22, BFIs disbursed loans worth Rs 1,046 billion to the service sector, an increment of 13.5 percent. The NRB report states that loans to wholesalers and retailers increased by 14 percent, transport, storage, and communication by 12.9 percent, and tourism by 6 percent.