Sudurpaschim Province’s GDP expected to reach Rs 4.30 arba

Dhangadhi: The gross domestic product (GDP) of Sudurpaschim Province is estimated to reach Rs 4.30 arba in the current fiscal year, according to the annual Economic Activity Study Report 2081/82 published by Nepal Rastra Bank.

The province’s GDP growth rate has been revised to 3.28 percent for the fiscal year. Sudurpaschim is expected to contribute 7.03 percent to the national GDP. Under the broad industrial classification, the agriculture, forestry, and fisheries sector is projected to make the highest contribution to the provincial GDP at 34.72 percent, while the administrative and support services sector will contribute the least at 0.13 percent.

In the previous fiscal year 2080/81, the contribution from the agriculture, forestry, and fisheries sector was revised to 33 percent, and the administrative and support services sector remained at 0.13 percent. For fiscal year 2081/82, the GDP of the province is estimated to be Rs 4.43 arba, with an expected economic growth rate of 3.32 percent at consumer prices and 2.71 percent at basic prices.

At basic prices, the primary sector’s growth rate is estimated at 2.82 percent, the secondary sector at 2 percent, and the tertiary sector at 2.9 percent. During the review year, the area covered by major agricultural crops—including food crops, vegetables, fruits, and spices—increased by 2.16 percent, while production rose by 2.77 percent.

Among food and other crops, oilseed production increased the most at 18.89 percent, followed by potatoes at 16.11 percent, while pulse production saw the largest decline at 77.88 percent. In animal products, fish production increased by 10.36 percent, meat by 0.79 percent, wool by 3.27 percent, and eggs by 1.76 percent. Of the total credit disbursed by banks and financial institutions in the province, 10.14 percent went to the agricultural sector.

By mid-Ashar 2082, agricultural credit in Sudurpaschim had decreased by 3.41 percent compared to mid-Ashar 2081, reaching Rs 15.96 billion. The average capacity utilization of industries included in the provincial sample was recorded at 34.47 percent, with overall reduced demand contributing to a decline in industrial production.

By the end of the review year, 16.97 percent of total credit in the province had flowed to the industrial sector. Credit to this sector increased by 4.37 percent compared to mid-Ashar 2081, reaching Rs 26.72 billion.

The average occupancy rate of the 10 sample hotels during the fiscal year was 36.40 percent. The number of real estate registrations increased by 37.50 percent, and revenue from registrations rose by 37.62 percent.

Total deposits collected by banks and financial institutions in Sudurpaschim Province as of mid-Ashar last year increased by 16.30 percent compared to mid-Ashar 2081, while credit flow increased by 2.98 percent.

Vehicle registrations rose by 35.07 percent compared to the previous fiscal year, and 72.88 percent of total provincial credit was directed to the service sector.

Of the budget allocated for current expenditure by the Sudurpaschim Province government, 75.66 percent was spent, while 66.47 percent of the capital expenditure budget was utilized during the review year.