Chitwan, July 12 : The industrialists and business persons in the district are found 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 for foreign land after their efforts to revitalize their COVID-dented businesses failed to pay off, it is stated.
The entrepreneurs are finding it
hard to pay their staff and the 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 hum 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 have closed
their businesses and gone abroad. According to him, they went abroad on
business visa. Similarly, 12 industrialists and business persons have formally
applied for closing their businesses.
"The situation is such that it
is difficult to either start a new venture or to continue with the existing
business due to the economic slowdown and the exorbitant bank interest
rate," Shrestha summed up the current business environment and the reason for
entrepreneurs quitting the business.
According to him, although this
problem is comparatively less in the main market areas, it is severe in new and
expanding trade towns. He said the entrepreneurs and traders are leaving their
businesses due to the 'tight' monetary policy.
Shrestha further added, "The
big industries and businesses are running for the 'sake of their existence'
whereas the 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 their
production and employees.
The Chamber of Commerce and
Industry, Chitwan, said the enterprises that are in operation have also reduced
their production. They are producing only around 40 per cent of their total
production capacity. Shrestha, the Chitwan Chamber of Commerce and Industry
president, said the State suffers in reduced tax while the businesses
themselves are facing problem to sustain due to the reduced production.
It is said that among the 4,000
registered members of the 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, are 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 have closed
down in Chitwan. He added that this trend is on the increase. According to him,
30 per cent of the 1,200 members affiliated to 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 the economic uncertainty," he added.
Stating that with 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 the banks reduced
the interest rate and brought it down to 1 per cent and the government also
paid serious attention on addressing the problems facing the industrialists and
businesspersons. (RSS)