IME Group launches major paper industry with Rs 2 billion investment, PM Oli inaugurates facility

KATHMANDU: Nepal took a significant step toward industrial self-reliance on Thursday as Prime Minister KP Sharma Oli inaugurated Nepal Pulp and Paper Industries, a new paper manufacturing facility established with a 2 billion rupee investment from the IME Group. Located in Ramnagar, Ward No. 1 of Gaushala Municipality in Mahottari District, the factory began operations with a capacity to produce 75 metric tons of high-quality paper daily, aimed at meeting domestic demand for writing and printing materials.

The formal inauguration took place at the factory premises, where Prime Minister Oli unveiled a copper plaque to mark the occasion. Following the ceremony, he toured the facility, inspecting the paper production process and an environmentally friendly calcium carbonate production unit integrated into the plant. The launch signals a push to reduce Nepal’s reliance on imported paper products and bolster local manufacturing.

In its initial phase, the industry has started producing photocopy paper and paper for notebooks and textbooks, addressing a critical need in educational, administrative, and other sectors. The facility’s output is expected to supply institutions like Janak Education Material Centre, which prints school textbooks, opening opportunities for the use of domestically produced materials in public education.

The launch event drew attention to Nepal’s broader industrial ambitions. Addressing attendees, IME Group Chairman Chandra Prasad Dhakal described the factory’s opening as a milestone, not only for his conglomerate but for the country’s industrial landscape. “This is more than just our entry into manufacturing,” Dhakal said. “It’s a new awakening in Nepal’s industrial journey, reflecting our commitment to self-reliance, economic growth, and sustainable development.”

Dhakal highlighted the factory’s role in creating jobs and curbing emigration. The plant has directly employed over 300 people, with thousands more benefiting indirectly through roles in supply chains, retail, and farming. Engineers, technicians, factory workers, and managers are among those hired, with over 50% of the workforce comprising local residents and women. “We’re reducing the need for our youth to toil in 50-degree heat in the Gulf,” Dhakal said, referencing the exodus of Nepali workers to the Middle East. “This is about reversing the trend of closing industries and fleeing investors.”

The 2 billion rupee investment underscores the private sector’s growing role in Nepal’s economy. Dhakal framed the project as a model of collaboration between businesses and the government’s vision for self-sufficiency. “This is the private sector lending a hand to national development,” he said, using a Nepali idiom to emphasize partnership. He urged stakeholders to see the factory as a step toward import substitution and a job-oriented industrial revival.

Nepal has long depended on imported paper, a reliance deepened by the closure of major facilities like Bhrikuti Paper Factory years ago. Small-scale and handmade paper industries have supported handicrafts but failed to meet industrial demand. The new plant aims to fill this gap, producing paper at a scale that could disrupt the import market and stabilize local supply chains.

Dhakal, who also serves as President of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI), praised recent government efforts to foster an investment-friendly climate. “Laws introduced lately are proving helpful,” he said, noting improved coordination between the state and private sector on economic policies. He argued that tangible projects like this factory demonstrate Nepal’s potential to investors. “When big projects launch within a year, it sends a clear message: Nepal is open for business.”

However, Dhakal raised concerns about challenges to Nepal’s investment environment, citing the stalled Pathibhara cable car project as an example. Initiated at the request of local residents and governments in Taplejung, the cable car faced opposition from outsiders shortly after construction began. Designed with cultural and environmental safeguards, the project aimed to boost tourism but has sparked debate. “Such obstructions send a negative signal globally,” Dhakal warned, urging the government and private sector to address factors deterring investment.

The industrial launch comes amid a shifting global context, with foreign aid declining and domestic entrepreneurship gaining urgency. Dhakal called for policies to encourage local businesses that generate jobs and revenue, leveraging Nepal’s natural resources for prosperity. “There’s no alternative to supporting those who create opportunities,” he said, appealing to political leaders and organizations to unite behind infrastructure and economic growth.

The factory’s inauguration also spotlighted broader economic priorities for the IME Group. Dhakal outlined three guiding principles: investing in nationally prioritized sectors, targeting areas that benefit the most citizens, and focusing on sustainable, high-demand industries. From remittances and banking to hydropower and tourism, the group’s ventures align with these goals. “This factory meets all three,” he said.

Government officials and industry leaders hailed the launch as a turning point. With its capacity to produce 75 metric tons daily, the plant could reduce Nepal’s paper import bill and stabilize prices for schools, offices, and publishers. Analysts see it as a test case for private-sector-led industrial growth, especially in rural districts like Mahottari.

Prime Minister Oli’s presence underscored state support for the initiative. His inspection of the eco-friendly calcium carbonate unit highlighted the factory’s dual focus on production and sustainability, a balance increasingly vital as Nepal seeks green development.

For locals in Gaushala Municipality, the factory promises economic uplift. Farmers supplying raw materials, women joining the workforce, and youth finding jobs closer to home reflect its ripple effects. “It’s not just about paper,” said one worker during the event. “It’s about hope for our community.”

Yet challenges remain. Nepal’s industrial sector has historically struggled with power shortages, bureaucratic delays, and competition from cheaper imports. The factory’s success will depend on consistent government backing, reliable infrastructure, and market acceptance of its products.

Dhakal remained optimistic, framing the launch as a call to action. “If we keep opening industries like this, Nepal can shed its import dependence and build a future where our youth stay and thrive,” he said. For now, the hum of machinery in Ramnagar signals a cautious but tangible step toward that vision.