KATHMANDU, June 12: Sudurpaschim Province has lagged behind in terms of economic progress despite having abundant natural resources, according to a recent study carried out by Nepal Rastra Bank (NRB).
There have been challenges in making the country self-reliant in agricultural production through its commercialization due to various factors like lack of agriculture infrastructure and management of natural disasters and barren lands caused by increasing migration, says the study.
The province is low in industrial and entrepreneurship due to the lack of research and exploration, and study of the potential sectors, it has been said.
Due to geographical difficulties, the province faces challenges in the expansion of people's access to finance through the development of financial infrastructures and of the increment of financial literacy and in the construction of infrastructures, deposit collection and deployment of qualified human resources for loan mobilization.
Revised interest rate corridor system introduced
Bridging the gap between the province's low capacity in collecting revenue and capitalizing the available resources also seems to be an uphill task.
Managing the required resources to increase the capacity of the local and provincial governments in mobilizing institutional and technical resources and in the infrastructural development is also another challenge.
Despite several challenges, the study says that expansion of the pocket area of cash crops, determining the appropriate prices and increase in the production by using modern technology are the possibilities that can be implemented immediately. There is a high potential of these activities promoting exports by substituting imports.
Productivity can be increased by minimizing the dependence on the seasonal rainfall for agriculture if the under-construction project of national pride, the Ranijamara Kulariya Irrigation Project, is completed on time. The project will irrigate a total of 38,300 hectares of land. Its physical progress has reached around 60 per cent.
Similarly, the province would see a significant contribution to the expansion and development of the agriculture sector if the construction of the Mahakali Irrigation Project which has been undertaken with the aim of irrigating 33,520 hectares of land is expedited and completed on time.
The study states that the productivity of farmland and agricultural production would be increased thereby speeding up the industrial development of the province through the timely completion of these two major projects.
It is stated that the province also has immense possibilities for the industrial development provided the construction of the required infrastructures like the industrial zone, industrial village, roads and electricity projects is speeded up for the same.
Likewise, the province has high potential for the promotion of tourism through the development of tourism infrastructures and facilities at the important historic, religious, cultural and natural touristic areas.
