Uncertainty shrouds revival of Janakpur Cigarette Factory (photos)
But years of mismanagement, outdated machinery, inconsistent raw material supply, and policy uncertainty led to its gradual decline and eventual closure.
KATHMANDU: A renewed debate is unfolding over the future of the long-shuttered Janakpur Cigarette Factory, once a cornerstone of the country’s industrial landscape and a major source of employment and government revenue.
Located in Janakpurdham, the state-owned factory had for decades supported thousands of jobs and fueled the local economy through domestic production.
But years of mismanagement, outdated machinery, inconsistent raw material supply, and policy uncertainty led to its gradual decline and eventual closure.
The shutdown not only displaced workers but also triggered a broader economic slowdown in the region, hitting small businesses and livelihoods that depended on the factory’s operations.
Now, momentum is building to bring the facility back to life. Industry voices argue that with modern technology, improved governance, and potential public-private partnerships, the factory could once again contribute to economic growth and job creation.
But the proposal is facing strong resistance from public health advocates, who warn that reviving cigarette production could run counter to efforts to curb tobacco use and protect public health.
Caught between economic revival and health concerns, the government is under increasing pressure to define a clear, balanced policy on whether — and how — the factory should reopen.
