KATHMANDU: Karnali Province, a region characterized by its slow economic development, is projected to achieve a growth rate of 3.39 percent in the fiscal year 2023/24, according to a report released by Nepal Rastra Bank (NRB).
The study forecasts an increase in the province’s gross domestic product (GDP) by 3.87 percent, while the basic price is expected to rise by 3.54 percent. This marks a notable improvement compared to the previous fiscal year, which saw GDP growth of 1.95 percent and a basic price increase of 2.31 percent.
The NRB’s findings are based on both on-site studies conducted in Salyan, Kalikot, Dailekh, and Surkhet districts and supplementary non-on-site studies carried out in Rukum West, Dolpa, Jumla, Mugu, Jajarkot, and Humla districts.
One of the report’s key highlights is the expansion of agricultural activity in the province. The total area covered by agricultural crops has grown by 1.94 percent in the review period. Among major crops, paddy cultivation witnessed a significant increase of 8.48 percent, while maize cultivation rose by 2.12 percent. However, areas under wheat, millet, barley, and buckwheat saw declines of 0.97 percent, 28.16 percent, 33.30 percent, and 23.01 percent, respectively.
Vegetable and horticulture farming has seen a remarkable surge, with the area devoted to vegetables increasing by 36.40 percent and horticultural crops by 5.98 percent. Overall agricultural production in the province grew by 6.79 percent, reflecting the sector’s resilience and growth potential.
Despite these positive developments in agriculture, Karnali Province continues to grapple with broader economic challenges. The report underscores the need for targeted interventions to sustain agricultural progress and address the decline in specific crop areas, which are essential for the province’s long-term economic stability.
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