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Skill Development Program for Local Employment Opportunities A Political Economic Analysis of Birgunj

Being one of the major industrial hubs of the country, Birgunj Metropolitan City (BMC) aims to further develop its manufacturing sector as this sector is crucial for the growth and development of the economy. While a promising change has been seen in the manufacturing sector owing to an increased supply of electricity over the last three years, the performance of the sector is still below satisfactory as the sector is not able to operate at its full capacity. Businesses continue to face regulatory hurdles pertaining to market entry, operation, and exit. Growing real estate prices are affecting the cost of doing business as well as conventional and limited means to access finance as against innovations in financing are further limiting the growth prospects. Policy unpredictability is also compromising investment security for businesses as evidenced by the case of reference prices and EXIM code regulations recently introduced by the government. And to top it all off, businesses housed in Birgunj grappled, and continue to do so, with the lack of skilled human resources as per the nature of businesses.

This analysis solely focuses on the reason behind Birgunj Metropolitan City’s problems of skilled human resources and the way forward for the metropolitan to mitigate this recurring issue by acknowledging the roles and interests of the key stakeholders.

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