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The government adopted a policy of liberal economy after the 2046 change. Government-owned institutions and factories were privatized.
A strategy has been taken to privatize the government-owned but billions of subsidies from the state fund every year or to operate the loss-making industries.
It seems that the then Prime Minister Girija Prasad Koirala gave priority to privatization based on the principle that the private sector should do business, not the government. At that time, it seems that the government has adopted a strategy to privatize or close industries and factories that are not making profit and are becoming dilapidated day by day.
Allegations are still being made that the said government has sold the industries and factories. Congress is receiving the most criticism of that policy. Because, he has prioritized the private sector through liberalization. Based on this principle, the strategy of privatizing, selling or closing down the industry was implemented . So far, the Congress has been accused of selling the industry, Janakpur Cigarette Factory is one example.
By 2050 Baisakh, the bank loan of Janakpur cigarette factory was 11 crore. In the financial year 2048/049, it was shown to have earned 57.2 million . It was argued that it was natural to have a bank loan to run a factory. It was said that despite the debt, the factory did not go into losses. At that time, the government officials concluded that the condition of the factory was deteriorating compared to the past and it was difficult for the products to compete in the market.
According to liberal economics, the theoretical path to privatization was open . But by that time the factory was not in the list of privatization . As the farmers reduced the production of tobacco and the quality also decreased, it had a direct impact on the sale of cigarettes. Being a Nepali industry, farmer's tobacco had to be purchased compulsorily. Tobacco produced in Nepal was not bought by other private factories or foreigners. Regardless of the quality of tobacco, the government had to buy it. As the machines were getting old, the need to add new ones was felt . Due to quality, it was hard to compete in the market .
Overcapacity was an additional burden for the factories . This put pressure on the factory's expenses. At that time, Bimal Koirala, Chairman of Janakpur Cigarette Factory Limited and Joint Secretary of the Ministry of Industry, said that it was becoming difficult to operate the factory. He said that he made a strategy to maintain the quality of cigarettes in the competitive market. For that, he claimed to have taken a strategy to reduce production and improve quality. He also accepted that doubt/doubt was created in quality.
Now the Janakpur cigarette factory has been closed and some people blame it on the multi-party system and especially the policy of the Congress party. Almost 32 years ago, what was its actual situation? Was it possible to operate or not? What was the background before the factory was closed ?
The conversation of journalists Shyam Ghimire and Sunil Adhikari with the then president of Janakpur Cigarette Factory Limited Bimal Koirala about the condition of Janakpur Cigarette Factory and its future was interviewed by Kantipur Daily on 20th Baisakh, 2050. was published as .
presentation: Rishiram Paudyal
![[Archive] Janakpur Cigarette Factory before its closure](https://assets-cdn-api.ekantipur.com/thumb.php?src=https://assets-cdn.ekantipur.com/uploads/source/news/kantipur/2025/third-party/arkchive-2232025115220-1000x0.jpg&w=1001&h=0)