KATHMANDU, Dec 3: About half of the transactions in Nepal’s service sector take place in Bagmati Province, where the country’s Federal Capital Kathmandu lies.
According to a study report of Nepal Rastra Bank (NRB), Bagmati Province contributed 46.7 percent of earnings of the service sector of the country’s GDP (measured at current price) in 2020/21. The rise in shares of the service sector was mainly due to a notable rise in transactions in real estate and transport businesses.
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The NRB report shows that Bagmati Province contributed Rs 1.604 trillion to the country’s GDP in the last fiscal year. The province’s share to the national GDP was around 37.7 percent at a time when Karnali Province’s contribution was only four percent.
Bagmati Province’s contribution to agriculture was 16.8 percent while its share in manufacturing businesses was 30.5 percent during the review period. The report shows that a fall in agricultural land due to an expanding urbanization caused a decline in agricultural productions.
During the review period, the production of food crops declined by 0.7 percent along with a fall in agricultural land area by 0.2 percent. The banks’ lending to agricultural businesses of the province was only 4.2 percent compared to 37.7 percent of the loan amount provided to manufacturing businesses.
