Biratnagar, Sept. 24 -- At one time, more than 600 large and small factories operated along the Sunsari-Morang Industrial Corridor, directly employing around 100,000 people. Markets bustled alongside the industrial activity. From the country's first jute mills to textile, plastic and steel-rod factories, they helped establish Biratnagar's identity as an industrial city.

Today, factory chimneys in Biratnagar no longer belch smoke as they once did. Some factories have shut down, while others have cut production. Workers' shifts have been reduced. Instead of adding new plants, industrialists and businesspeople are struggling to keep existing factories in operation.

Industrialists say factory activity has been affected by the 2015 earthquak...