Answer to Question #198233 in Economics for Santosh pokhrel

Question

What is the major challenge in establishing chemical industries in the

countries like Nepal? Mention how such challenge can be strategically

overcome?

Answer 1

Officially known as the Federal Democratic Republic of Nepal, Nepal is a country located in South Asia. The landlocked country is found mainly in the Himalayas, although parts of it are also found in the Indo-Gangetic Plain. The country has an area of ​​approximately 56,827 square miles, making it the 93rd largest country in the world in size. In terms of population, Nepal is the 48th largest country in the world with a population of about 26.4 million. The country is bordered by China, India and Bangladesh. The capital of the country is Kathmandu, which is also the largest city.

Unfortunately, Nepal is one of the least developed countries in the world due to the lack of any significant resources, as well as due to a poor transport network. Another fact that contributes to such a low level of development is the landlocked nature of the country. For this reason, the country is largely dependent on imports for a wide range of things such as fuel, consumer goods, building materials, metals, and other things. Few resources in the country include precious minerals and metals (such as iron ore, copper, magnesite, etc.), water resources for hydropower, agricultural land and forests.

Most of the country's territory, about 80%, is hilly. However, studies of the country's hilly terrain have shown that there are several deposits of metallic, non-metallic minerals, fuel minerals, and decorative minerals. These minerals include gold, limestone, mica, iron ore, copper, and others. While there are suspicions of oil deposits in places like Pyutan, Nepalgunj and Daileh, there has been no confirmation of this. Natural gas fields are believed to be located in places such as Mustang, Kathmandu Valley and some other areas.

Limestone is mined in places like Surkhet, Hetauda and Chovar and has always been used to produce cement in the country. Another mineral, magnesium, is mined in a number of places, such as the Campugat mine. Despite the limited reserves of minerals, the Kampugata mine in the Sagarmatha zone has deposits of about 20 million tons of ore, of which 30% is magnesium. These deposits make Nepal one of the world's leading producers of magnesium.

The lack of modern technology and an equally skilled workforce means that the country has not been able to extract these minerals at maximum levels. If the government makes the right investments, the sector has the potential to create new industries as well as create new job opportunities. In addition, government regulation is a disincentive for multinational companies wishing to invest in this sector.