KATHMANDU: Karnali province recorded an economic growth rate of 2.94 percent in the fiscal year 2082/83. According to a study by Nepal Rastra Bank, this growth is lower than the national projection of 3.89 percent.
Karnali contributes only 4.20 percent to the national economy, the lowest among the seven provinces. The provincial gross domestic product is estimated at Rs 277.25 billion at current prices, with the service sector contributing 58.41 percent, agriculture 31.52 percent, and industry 10.07 percent.
The agricultural sector shows mixed results. While overall crop production fell by 0.65 percent, major food crops including paddy, maize, wheat, millet, barley, and buckwheat saw an average growth of 3.55 percent. Conversely, vegetable and horticultural production declined by 3.76 percent, and fruit production dropped by 4.05 percent. In livestock, milk, egg, and wool production increased, while meat and fish production decreased. Only 41.90 percent of the province’s cultivated land has irrigation facilities.
Industrial performance remains weak, with selected industries operating at an average capacity of only 30.89 percent. Despite this, industrial credit flow rose by 25.63 percent to Rs 5.07 billion. Construction-related industries accounted for the largest share of this credit at 35.99 percent.
The tourism sector suffered a significant setback, with the number of foreign tourists visiting Karnali falling by 27.68 percent to 22,163. The report attributed this decline primarily to reduced activities by non-governmental organizations and the rising cost of aviation fuel. Tourist arrivals from India, China, and third countries all saw sharp decreases.
Regarding financial services, the number of bank and financial institution branches in the province reached 481 by the end of Ashad 2083. Total deposits grew by 22.03 percent to Rs 111.15 billion, while credit flow increased by 9.79 percent to Rs 66.85 billion. In terms of infrastructure, the total road network reached 4,392 km, though only 6.81 percent of these roads are blacktopped.
