In as much as lockdown restrictions are meant to curb the spread of corona virus, it has caused more harm to the economy.
According to a recent government report, capacity utilisation has dropped to 30 percent.
Other cross cutting challenges noted by the report, undertaken by the Ministry of Industry and Commerce, include foreign currency shortages for the importation of raw materials and spare parts, delays at the borders as the clearance process is taking long for both imports and exports and depressed demand.
“Closed borders have affected imports and exports. Lockdown restrictions including the curfew are affecting the companies in terms of operating hours, which consequently affect the level of industrial production.” The report said.
The report provides an overview of the state of industry focusing on major companies. It is divided into the various sectors namely food and drink and tobacco, wood and furniture, textiles and clothing, leather, metals and electricals, chemicals, fertiliser, plastics and packaging, cement and the motor industry.
According to the report, the most affected sectors include motor industry, printing and packaging, fertiliser, retail, dairy, baking and textile and clothing.
“Generally, the major challenges being faced by all companies are to do with reduced demand as disposable incomes are low,” said the report.
The lockdown which commenced from March this year was meant to curb the spread of corona virus.