Economic condition leads to closure of 177 SMEs in Parsa

SMEs
File: A home-based weaving enterprise

Birgunj (Parsa), December 13

The economic condition of the country has had an impact on SMEs in Parsa.

According to the Cottage and Small Industry Office, Parsa, 177 factories in the district have shut down in fiscal year 2022/23. The number has gone up since 2021/22 when 152 factories shut down.

The Chief of the office, Dhananjaya Kumar Singh, attributes the current situation to a lack of loans from banks and financial institutions, coupled with a shortage of capital. In the fiscal year 2022/23, the office registered 1,089 new industries, compared to 1,480 in the fiscal year 2021/22.

Additionally, there were 1,275 renewals for industries in the fiscal year 2022/23. During the same fiscal year, the industries collectively generated revenue exceeding Rs 10 million. Singh further reported that these industries employed 4,460 individuals.

In 2021, a government-led study found that 75 per cent of the cottage and small enterprises in Nepal had shut down due to the Covid pandemic.

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