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

On the occasion of the 68th Annual General Meeting of Biratnagar's Old Morang Industry Trade Association on Friday, industrialists said that 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 association. 

In the last three decades, the lack of good governance has emerged as a major problem in the country. "Nowadays in Nepal, there is a feeling of 'corrupt air' more than the climate," he said. They say that due to irregular and insufficient power supply, many industries are not operating at full capacity.

"This has made the cost of production high, due to which Nepali industry has reached a situation where it cannot compete in the international market," said Rathi, "We request the Ministry of Industry to ensure electricity supply." 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, businessmen complain. They request the government of Nepal to review the tax rate and bring a policy to discourage illegal transactions. 

"The fact that the cross-border market is flourishing and the Nepalese market is deserted is a failure of the state," said Pawan Kumar Sharda, president of Nepal Industry Confederation, Koshi. Rakesh Surana, president of industry organization Morang, said that it is difficult to run industries due to lack of electricity supply. "If the electricity problem is not improved, we will be forced to protest," he said.