Roadway remains a major challenge for Bagmati province’s economy

November 12, Kathmandu: Bagmati Province, home to the federal capital Kathmandu, faces significant roadway challenges that hinder its economic development, according to a recent study. A recent report from Nepal Rastra Bank identifies poor physical infrastructure, particularly in transportation and healthcare, as critical obstacles to improving the quality of life and the provincial economy.

The study, which reviewed economic activities for the fiscal year 2025/26, also highlighted the adverse effects of natural disasters and rapid urban population growth, which have reduced agricultural land and left many areas uncultivated. To address these issues, the report emphasises the need for better disaster management and a balanced approach to land use.

Despite these challenges, Bagmati Province has strong potential for cultural tourism, featuring historic sites in Kathmandu, Bhaktapur, and Lalitpur, as well as the country’s busiest international airport. However, tourism infrastructure needs better utilisation. The National Statistics Office projected a 5.2 per cent economic growth rate for the province, but the actual growth was only 3.7 per cent.