CHITWAN, JULY 12
Industrialists and businesspersons in the district are quitting their businesses and leaving for foreign employment due to the economic slump brought by COVID-19. More and more entrepreneurs are leaving the country as their efforts to revitalise their COVID-affected businesses failed to pay off.
Entrepreneurs are finding it hard to pay their staff and building or land rent. The number of entrepreneurs leaving the country for overseas has increased in the district in recent months.
Upon observation, one can see that many outlets and shutters in the main trading hub of Narayangadh and surrounding markets are either shut or have put up 'On Sale' notice.
Chitwan Chamber of Commerce and Industry president Chun Narayan Shrestha said seven businesspersons had closed their businesses and gone abroad. According to him, they went abroad on business visa. Similarly, 12 industrialists and business persons have formally applied to close their business.
Summing up the current business environment and the reason for entrepreneurs quitting the business, Shrestha said, "The situation is such that it is difficult to either start a new venture or tocontinue with the existing business due to economic slowdown and exorbitant bank interest rate."
According to him, although this problem is comparatively less in the main market areas, it is severe in the new and expanding trading towns. He said entrepreneurs and traders were leaving their businesses due to tight monetary policy.
Shrestha further said, "Big industries and businesses are running for the 'sake of their existence' whereas smaller businesses have been hit hard and are in vulnerable situation."
Even those enterprises that are somehow keeping their businesses afloat have been cutting down on production and employees.
The Chamber of Commerce and Industry, Chitwan said the enterprises that were in operation had also reduced their production.
They are producing only around 40 per cent of their total capacity. Shrestha, also the president of Chitwan Chamber of Commerce and Industry, said the state had suffered due to reduced tax while the businesses themselves were facing problem sustaining due to reduced production.
It is said that among the 4,000 registered members of Chitwan Chamber of Commerce and Industry that are in operation, most are running in financially weak condition.
The automobile sector, poultry sector, concrete manufacturing industries, food industries, construction enterprises, among others, have been affected the most by the economic downturn exacerbated by the COVID-19 pandemic.
President of Industry Association, Chitwan, Trilochan Kandel said till date 30 per cent industries had closed down in Chitwan, adding, "This trend is on the rise." According to him, 30 per cent of the 1,200 members affiliated with the Association have closed shop.
"The trend of industries closing down is increasing while opening new ones is minimal. It appears that the trend of industries closing down will still increase with the increasing bank interest rates and economic uncertainty," he added.
Stating that this growing trend of entrepreneurs going abroad by closing their enterprises will result in large number of people losing employment and hundreds of thousands of youths being left with no option but to go for foreign employment, Kandel suggested that the monetary policy of the state should be flexible to stop this trend.
He suggested that banks reduce the interest rate and bring it down to 1 per cent.
He also urged the government to pay serious attention towards addressing the problems facing industrialists and businesspersons.
A version of this article appears in the print on July 13, 2023, of The Himalayan Times.
