No expected reforms on demand side: CNI

KATHMANDU, JANUARY 2: A study carried out by the Confederation of Nepalese Industries (CNI) has stated that there has not been expected growth on the demand side of the market. The study report of the CNI was released at a time when the government claimed most of the indicators of the economy were positive and the market was becoming vibrant.

The CNI study report stated that expected reforms in the market could not happen due to a shrink in the consumers’ demand. The comparative survey study conducted based on the first quarters of the last three fiscal years among the enterprises revealed that the overall demand side of the market was weak, the price of raw materials was on the rise and there has been a decrease in the import of the industrial raw materials.

Releasing the report here yesterday, CNI President Rajesh Kumar Agrawal argued that the confidence level of the industrialists has weakened since the last fiscal year due to the unfavourable situation of the economy. As per the survey, the overall demand side of the industrial output has decreased by 12.06 per cent in the review period of the current fiscal year compared to the same period last fiscal year.

Likewise, the demand of the industries has shrunk by 36.93 per cent and the transaction volume has decreased 7.46 per cent. In the first quarter of the current fiscal year, 55.32 per cent of industrialists have postponed their plans to invest as revealed by the survey. Based on such facts, the CNI has said that the economic condition has not improved in the country as claimed by the government.

RSS