Kathmandu: The Bagmati Province, which includes Nepal’s federal capital, Kathmandu, continues to grapple with significant challenges related to its roadway infrastructure. A recent study by Nepal Rastra Bank highlights that physical infrastructure, including roads, remains a major obstacle to the region’s economic development.
According to National News Agency Nepal, the study report emphasizes that not only roadways but also health services, waste management, drinking water, and urban management are critical areas needing improvement to enhance the quality of life and economic stability in Bagmati. The report, which analyzes economic activities for the fiscal year 2081/82BS, also points out that natural disasters significantly impact the province’s economy, suggesting a need for improved disaster management strategies.
The report further states, “It is challenging in the Bagmati Province to ensure quality education and accessible and affordable health service.” The rapid urban population growth has reduced agricultural land, while arable lands in hilly and mountainous regions remain uncultivated. The study calls for a balanced approach to protect and utilize agricultural land effectively.
Additionally, the province faces the challenge of providing full-time opportunities for those dependent on agriculture. Increasing agricultural production is crucial for economic stability. The impact of climate change and natural disasters on agriculture, hydropower, industry, and the service sector further exacerbates economic slowdown, while rising land prices around the valleys create financial pressures on the private sector, inflating product prices and affecting market competitiveness.
Despite these challenges, Bagmati Province holds significant potential for cultural tourism, with historic and archaeological sites in Kathmandu, Bhaktapur, and Lalitpur districts. The presence of the country’s busiest international airport also bolsters tourism and transport opportunities. While tourism infrastructure is relatively advanced, the report suggests that full utilization is necessary for optimal benefits.
The growth of information technology and connectivity are other positive factors contributing to sustainable economic growth. However, initial projections by the National Statistics Office estimated a 5.2 percent economic growth for the fiscal year 2081/82BS in Bagmati Province, but actual growth reached only 3.7 percent.