v1.0: edited data, for public use

2007-10-15

The first known exercise in collecting data on artisanship and processing of primary products was undertaken during the time of Rana Prime Minister Juddha Shumshere Rana. But, it was not a nationwide exercise. It was an effort to collect the information on artisanship and mapping the resources available in the vicinity of Kathmandu. Efforts to collect data on industrial activities on a regular basis started only after the formal establishment of the Central Bureau of Statistics as a national agency for collection, management and production of statistics under the Statistical Act of 1958. The first Census of Manufacturing Establishments (CME) was carried out in 1964/65. (2022 B.S.) The second census was carried out 8 years later in 1972/73 (2030 B.S.). Thereafter, the CMEs have been carried out in 5 years intervals. The years of implementation of the CMEs are given below:

The CME 2006-2007 is the ninth Census of Manufacturing Establishments of Nepal. As seen above, CME has been conducted in the Nepali year ending at 4 and 9. The CME covers all units that engaged 10 or more persons. These units may or may not use power or auto machines in their industrial operations. This coverage is adopted in CMEs since 1991/92. Before 1991/92, i.e., up to the fifth CME, it covers all manufacturing establishments engaging 10 or more persons or using auto machines irrespective of persons engaged.

Main Changes in the census procedures over the years

It has been more than 4 decades since the process of census of manufacturing establishments were initiated in the country. There have been considerable changes in the census process and the census coverage. Some of the important changes are described below:

Definition / coverage:

From the very beginning establishments of certain size were covered in the census. The establishments engaging 10 or more persons or using mechanical power were covered till 5th Census. This meant use of automotive machines, irrespective of number of persons engaged qualified the establishment to be brought under the census. From the 6th census onwards, only the establishments that engaged 10 or more persons were brought within the ambit of the census. This led to the dropping of many units especially rice, dal and oil mills from the census coverage. This was done because it became almost impossible to identify all establishments that used machines. The use of machines was becoming popular even in very small units. Many new household operated units were found using mechanical power.

Data Processing:

The data processing of the first and second censuses was done entirely by hand. The manual processing meant a lot of time taken for bringing out the result and also difficulties associated with preparing the tables. From the third census, CBS started to use modern computing machines. At the initial stages, involvement of programmers and processing experts were a must. It would take years to get the data processed and made ready for publication. With the growth of use of micro computers, the processing time has become very short. Furthermore, the officials of the Bureau can do the processing using the standard statistical programs.

Classification of industries:

In the first four censuses, there was no standard industrial classification. The industries were classified by the CBS without using any internationally acceptable norm or criterion. The CBS first started to use the Industrial classification based on the Nepal Standard Industrial Classification (NSIC), which in turn is based on International Standard Industrial classification (ISIC) in the CME of 1987/88. So the CME was made internationally comparable since the 5th CME. The output tables and indicators of earlier CMEs could not be meaningfully compared at international levels. The Central Product Classification (CPC) developed by the UN was introduced in the census of 2001/02. So now census inputs and output have become internationally comparable.

The Census of Manufacturing Establishments (CME) 2006-2007 is the ninth in the series of CMEs carried out in Nepal since 1964-65. The primary objective of CME is to provide updated data on the composition, growth and volume of the manufacturing sector. The census is conducted in “Establishment Approach”. The reference period is considered as the fiscal year 2006-207. There were 3446 establishments found operated throughout the country engaging 10 or more persons irrespective of usage of power machines. Such establishments are called modern manufacturing establishments. Gross value added (GVA) contribution of modern manufacturing sector is Rs. 4100 crore at current prices.

Following the international practices, the establishments surveyed are classified according to the Nepal Standard Industrial Classification (NSIC) at 4 digit level and designed results accordingly. There are altogether 23 types of tables presented in the CME final report at national level including employment and earning, fuel, raw material, value of shipment, industrial services and non-industrial services, indirect tax, stocks, capacity utilization, fixed assets. The report contains tables on investment for environment protection and problem faced by manufacturing establishments also. The problems are presented according to the priority given. Lack of raw material (25%) is the major problem of the manufacturing sector followed by lack of capital (15%), lack of market (14%) and poor industrial policy (13%) respectively.

Ten (10) indicators including number of establishments, number of persons engaged, number of paid employees, wages and salaries, value of stocks at the end of the year, gross addition of fixed assets during the year, gross fixed assets at the end of the year, value of output, value of input and value added are defined as principal indicators. The principal indicator tables of Nepal and Urban/Rural are prepared by legal status, ownership, number of persons engaged, and size of fixed assets and by NSIC at 4 digit levels in the National Report. But the principal indicator tables of district by legal status, ownership, number of persons engaged, and size of fixed assets and by NSIC at 4 digit level are kept in the District Level report. Cost of raw materials purchased and the value of shipments are presented according to the Central Product Classification code at 4 digit levels at national level only.

Census/enumeration data [cen]

Manufacturing establishments engaging 10 or more persons