Nepal’s largest paper industry begins operations with IME Group’s investment

KATHMANDU: The largest paper industry in Nepal, funded by the Chair of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) and Chair of IME Group, Chandra Prasad Dhakal, has officially begun operations.

Located in Mahottari, the factory was launched on Thursday.

IME Group, which is involved in various sectors including finance, tourism, automobiles, information technology, and energy, has invested over Rs 2 billion in this paper factory.

The industry, named Nepal Pulp and Paper Industries Pvt. Ltd., is situated in Ramnagar, Gaushala Municipality-1 in Mahottari, and is fully funded by Nepali investors.

Construction of the factory began in 2078 BS (2021 AD), and production officially commenced in 2081 BS (2024 AD).

Dhakal emphasized that the industry aims to reduce import dependency and create significant domestic employment.

Nepal consumes nearly 150,000 metric tons of paper annually. The lack of a domestic paper industry has previously forced the country to import all necessary paper products. With this new industry, the private sector is stepping forward to reduce reliance on imports.

Dhakal praised the government’s efforts to promote private sector investment by making legal reforms through ordinances. He highlighted that the private sector’s role in improving Nepal’s investment climate is crucial, particularly in the wake of global economic downturns following the COVID-19 pandemic and the Russia-Ukraine conflict.

He also expressed his commitment to advocacy efforts for creating better investment conditions in Nepal.

The factory’s production will focus on replacing imports by using local materials, aiming to manufacture high-quality paper locally.

The factory will also contribute to environmental sustainability by utilizing waste materials for production.

Dhakal noted that while Nepal lacks a paper industry, the new factory will produce about 40% of the paper needed for the country in its first year.

The factory plans to use domestic raw materials and local labor to produce top-quality paper.

In addition, the project aims to promote Nepal’s tourism industry by utilizing local resources and creating new job opportunities, particularly in the agricultural and tourism sectors.

Dhakal encouraged all political parties, communities, and citizens to support the industry for the nation’s economic growth.