Debate is intensifying over a potential restart of the long-closed Janakpur Cigarette Factory in Nepal, which once employed thousands and contributed significantly to domestic tobacco production and tax revenue. The government-owned factory, which shut down due to management failures, outdated technology, and supply chain issues, remains a focal point of competing policy arguments. The factory produced an estimated 3 to 4 billion cigarettes annually at its peak.
Proponents of revival say the facility could be modernized through improved technology and private-sector participation to restore jobs and industrial output, while public health advocates warn that resuming cigarette production would increase tobacco-related harm. The government is now weighing how to balance potential economic gains with health and regulatory concerns as pressure builds from industry stakeholders and local voices.