Nepal Rastra Bank provincial study finds wide gaps in growth, deposits and farm loans

A study on provincial economic activity published by Nepal Rastra Bank has found wide disparities between provinces in growth rates and bank deposits.

According to the study, in fiscal year 2082/83 Karnali Province's growth rate stood at about 2.94 percent and Sudurpashchim's at about 3.28 percent. Karnali's share of the national economy is only about 4.20 percent, the lowest among the seven provinces.

Sudurpashchim's per capita income stands at about $1,170, below the national average, with an unemployment rate of about 11.5 percent there.

On banking, by the end of Asar 2083, Bagmati Province alone had collected more than Rs 5.2 trillion in deposits, with loans disbursed there reaching about Rs 3.6 trillion. Lumbini Province leads in deposit growth rate, while Karnali's total deposits are limited to about Rs 111 billion.

Madhes Province has disbursed nearly Rs 9 billion in concessional agricultural loans, with Dhanusha's share the highest and Saptari's the lowest. The average capacity utilization of industries in Karnali has fallen from about 39 percent to about 31 percent.

The study notes that foreign tourist arrivals in Karnali fell by about 28 percent due to declining activities of non-governmental organizations and rising aviation fuel prices.