Business confidence falls sharply

Kathmandu December 10- Business confidence points in the country has dropped as a result of as supply disruption and fuel shortage due to India-imposed trade blockade and on-going Tarai unrest, an official survey has shown.

The business confidence index has plunged to 27 this year from 50 last year, according to the Business Confidence Survey conducted by the Finance Ministry among 300 firms across the country between September and November. A reading under 50 suggests that the business confidence is falling.

The better business confidence last year was due to the formation of a new government after the second Constituent Assembly election.

The unrest in Tarai, where most of the industries are based, has continued for nearly four months, while the country has been facing the Indian trade blockade for the last two and half months. As a result, around 90 percent of the industries have remained closed, trading activities have slumped due to transportation problems amid fuel shortages and  hotels, restaurants and the overall tourism sector have been hit hard.

The survey was conducted among firms related to 33 sectors, including various industries, wholesale and retail trading, hotel, agriculture, real estate, telecom, contractors, hydropower and other infrastructure.