May 23: Nepal Rastra Bank (NRB) has projected the country’s demand for cement go grow two folds in the next five years.

Stating that big infrastructure projects are currently under-construction and new projects are also being implemented, the central bank has project the annual demand for cement in Nepal to rise to 25.8 million metric tons by 2025 AD.

Considering the Fiscal Year 2020/21 as the base year, the central bank has projected the demand for cement to grow continually in the next five years.

The annual demand for cement in the domestic market of Nepal is around 9 million metric tons at present. The production capacity of 55 cement industries of Nepal is said to be 15 million metric tons per year. However, all the cement industries are not operating in optimal capacity.

Unveiling a report on Foreign Investment in Nepal’s Cement Industry on May 21, the central bank said that the demand for cement is projected to grow as national pride projects such as the  Gautam Buddha International Airport, Pokhara International Airport, are currently under construction and other big projects are also in the pipeline.

The study states that the demand for cement is expected to grow due to the projects that are in the offing such as Budhi Gandaki Hydropower Project, Upper Marshyangdi Hydropower Project (II), Kaligandaki George, among others.

The report also suggests opening more companies with foreign direct investment. It also suggests optimal use of limestone quarries of the country and to reduce import by bringing those quarries into operation. Another suggestion given by the report is export promotion.