The industry and business sector in Nepal is still going through a transitional state, according to the industrialists of Morang. They say that recently the morale of the private sector has not increased and political instability and uncertain policies have hindered economic growth.

Speaking at the 68th Annual General Meeting of Biratnagar's Old Morang Industry Trade Association on Friday in Biratnagar, industrialists  He said that the policy continuity has been maintained due to frequent government changes. "Even if one government allocates the budget, the implementation of the policy has not been effective due to the practice of another government taking charge during the implementation," said Anupam Rathi, president of the Morang Udyog Trade Association. 

According to Rathi, the lack of good governance has emerged as a major problem in the country in the last three decades. He added, "Nowadays, Nepal feels more 'corrupt air' than the climate." Their common pain was that many industries could not operate at full capacity due to irregular and insufficient electricity supply. 

Illegal transactions through open borders have also weakened Nepal's economy, industrialists have said. In India's border market, daily consumption goods are taxed only from zero to 12 percent, but in Nepal, such goods are taxed more than 30 percent including VAT, business people complain. They have requested the government of Nepal to review the tax rate and bring a policy to discourage illegal business.