- Thursday, 9 April 2026
Kathmandu, Apr. 9: Prime Minister Balendra Shah’s father, Dr. Ram Narayan Shah, who passed away a few months back, was once the chief of the Singha Durbar Vaidyakhana, Nepal’s oldest herbal medicine production factory.
Most of the Vaidyakhana employees were excited when Shah was appointed Prime Minister, hoping he would be aware of the institution’s struggles and understood how to improve the centuries-old company.
However, senior officials at the Vaidyakhana were shocked when the Prime Minister excluded the issue from the government’s 100-point reform list.
A team of senior officials, including Dr. Prakash KC, head of the Vaidyakhana, met with Dr. Sudha Sharma Gautam, the then Minister for Health and Population, aiming to improve the Vaidyakhana.
However, the Vaidyakhana team felt discouraged after meeting the Minister. The Vaidyakhana medical officials stated that the crisis remains, as the Ministry has ignored the issue for decades.
Speaking with The Rising Nepal, Dr. Prakash KC, Executive Director of the Singha Durbar Vaidyakhana, said that they have briefed the real challenges of the Vaidyakhana many times.
“We have briefed the Ministry on our problems many times. Vaidyakhana requires a sufficient budget, staffing issues, and patent rights issues. But after Shah was appointed new PM, we haven’t visited the Health Ministry, as I hoped the PM knows the Vaidyakhana issues well,” said Dr. KC.
Many officials, including Dr. KC, are disappointed over the omission of the Vaidyakhana issue in government’s 100-point reform list. It has been struggling to meet the national medicine demand with its limited resources.
Vaidyakhana’s contribution in medicine production
Vaidyakhana is Nepal’s oldest herbal medicine production factory. It was established 400 years ago. But in recent years, the company has been facing several challenges related to finance, staffing, and resources.
According to Dr. KC, the company is in crisis, facing structural instability, a lack of infrastructure and manpower, and outdated technology.
Even in the modern era, many staff burn wood fires in the Vaidyakhana to produce medicine, rather than using modern technology.
Likewise, many private companies have been producing and selling copies of Vaidyakhana’s medicines. But the company is unable to obtain patent rights for its original medicines.
The company has been unable to meet its annual targets, as its production capacity has significantly decreased. Vaidyakhana officials informed that the company is unable to achieve even 20 per cent of its annual target. Each year, the company records approximately Rs. 30 million in income while its expenditure doubles to around Rs. 60 million.
Despite these challenges, Vaidyakhana has made an effort to scale up the annual production and to expand the market in recent times, said Dr. KC.
“Despite many challenges, we are elevating the growth in the current situation, as the government has not been concerned about basic facilities, modern technology, and adequate staffing. I hope, the new government would solve the problem of Vaidyakhana. For this, the Minister needs to show concern in these matters and make necessary decisions,” Dr. KC said.
About 400 years ago, King Pratap Malla established the company, aiming to produce medicines and treating the royal family members.
Later, since the factory was shifted to Singha Durbar, the industry has been operating under the Singha Durbar Vaidyakhana Bikash Samiti. Since then the company came to be known as Singha Durbar Vaidyakhana.
This company used to produce more than 100 types of herbal medicines and distributed them across the country. However, in the recent times, the company is struggling to produce even 70 types of medicines.
Dr. KC also warned that if the government cannot operate the company properly, it could face the fate of Gorakhkali Tyre, Bansbari Leather Shoe Factory, and Biratnagar Jute Mill.
He informed that the government currently allocates around Rs. 60 million annually, an amount which is considered insufficient. Of this budget, about 70 per cent is spent on recurrent expenditures, while only 30 per cent is allocated for capital expenditure, Dr. KC informed.
When Janata Samajwadi Forum leader Upendra Yadav was the Minister for Health and Population in the KP Oli-led government, the Rastriya Swatantra Party had submitted a 26-point statement for the health sector reforms. In which the RSP had emphasised basic health.
Similarly, the Vaidyakhana reform issue was one of the major health agendas in the RSP’s election manifesto for the March 5 election.
Nevertheless, the historic pharmaceutical factory expects radical reforms from PM Balendra Shah, whose father witnessed the problems of the company firsthand. —
