Gopal Tiwari

Kathmandu, May 5:

The situation for industrial and tourism sector, especially the medium and large-scale industries, is turning from bad to worse, due to weak security arrangements.

A latest industrial review on ‘industrial and tourism’ sectors conducted by the Federation

of Nepalese Chambers of Commerce and Industry (FNCCI) has found that there is no

security for around 30 per cent industries scattered in all the five development regions of the country.

A source in the business sector, on conditions of anonymity, disclosed that the result of the industrial review — which is yet to be made public — has found that insecurity has badly scarred the whole business community in recent times.

FNCCI had taken stock of industry and tourism sectors in 40 districts as an initial stocktaking exercise. The rest 35 districts are going to be reviewed during the second phase, said the source. According to the assessment, retail business, wholesale, food-grains, agency and other trading businesses have been found in ‘moderate’ situation under the existing ‘peace and security’. Small industries are untouched and safe in terms of peace and security while medium and big ones are hit hard. “The condition of the tourism industry is pathetic which is facing a completely chaotic condition,” states the review.

The security situation in Kathmandu valley and in headquarters of the districts in all five development regions have improved, while peace and security in rural areas is ‘poor’, says the review. Similarly, in the category of transportation and movement of goods and services, moderate improvement has been seen which is not completely safe from a security point of view. Economic growth has been hit due to bad performance of business and economic activities. Thousands of employees are at the ‘surviving edge’, due to continuous poor performance by business establishments. According to the Central Bureau of Statistics, the contribution of industrial sector to the national Gross Domestic Product (GDP) has significantly declined to 7.73 per cent during the fiscal year 2003-04, compared to 9.31 per cent in 1994-95.

Tourism sector’s (hotels, restaurant and trade) contribution to the GDP has also declined to 10.45 per cent in 2003-04 compared to about 12 per cent in 1994-95.