Sixty-one percent of industries across the country remained completely shut during almost four-month-long lockdown imposed by the government from March 24 to contain the spread of the coronavirus, as per a study report on impact of COVID-19 released by the Nepal Rastra Bank (NRB) today
Sixty-one percent of industries across the country remained completely shut during almost four-month-long lockdown imposed by the government from March 24 to contain the spread of the coronavirus, as per a study report on impact of COVID-19 released by the Nepal Rastra Bank (NRB) today.
The report, which is based on a survey carried out among 674 industries across 52 districts, states that only four percent of industries were able to operate in full-fledged manner during the lockdown, while 35 percent of industries remained open partially.
Citing that this closure of industries severely impacted the country’s economy, the report states that small and micro businesses/industries suffered more during the lockdown compared to large businesses/industries.
Those industries that participated in the NRB’s survey said they had downsized their workforce by 22.5 percent on an average during the lockdown. As per the report, industries had primarily laid off contract-based workers. Among others, small and medium industries had comparatively laid off more staffers.
Similarly, on average, industries were found to have cut off workers’ salary by 18.2 percent during the lockdown period. Along with this, industries had cut off most of allowances that workers had been getting.
Among others, hotels and restaurants sector, transportation and educational institutions had primarily reduced workers’ salary.
As per the NRB report, industries had reduced their production capacity by 73.8 per cent during the lockdown period. Meanwhile, the survey report states that industries that have suffered from the current crisis and the lockdown will take at least another nine months to resume normal operations.
Though the majority of industries said they would continue their businesses, some industries, especially small scale industries, planned to sell their businesses, as per the NRB report.
Industries that participated in the survey said that they can retain all staffers and pay their full salary if they are provided subsidised loans at five percent interest as stated in the budget and the Monetary Policy for the current fiscal year.