KATHMANDU: The Bagmati Province, having the federal capital, Kathmandu, is still facing a challenge of roadway.

A study report released by Nepal Rastra Bank has termed physical infrastructures as major challenges of province economy in Bagmati. The roadway, health service, waste management, drinking water and urban management are the areas that are yet to cater to quality life and province economy, the report argued.

The study on economic activities of the fiscal year, 2081/82BS carried out by the central bank further informed that natural disasters are equally vital to impact adversely on economy. The province government requires better disaster management, it suggested.

“It is challenging in the Bagmati Province to ensure quality education and accessible and affordable health service,” the report mentioned, adding that rapid population in urban area has badly shrunk agricultural land, while leaving the arable land uncultivated in hilly and mountainous regions is a concern. A balanced approach to protection and use of agricultural land is therefore essential as per the study.

Moreover, the Bagmati Province is bearing the burden of guaranteeing full time opportunities for the population dependent on agriculture. Increase of agricultural products counts much to this regard.

Impact of climate change and natural disasters in agriculture, hydropower, industry and service sector is another worrying factor to slow the provincial economy. Rise of land price in the areas surrounding the valleys has created a pressure on private sector to lease the land at high costs, resulting in high prices of the products. It has impacted the competitive market later.

Irrespective of such challenges facing the province economy, the province bears a huge potential on cultural tourism, as it houses the historic and archaeological places in Kathmandu, Bhaktapur and Lalitpur districts.

This province has the busiest international airport, thereby contributing to tourism and transport. The tourism infrastructures relatively better and high in this province, however, require full utilization, the report read.

The information technology and rise of connectivity are other positive areas to significantly chip in sustainable economic growth.

The National Statistics Office had made the initial projection of 5.2 percent economic growth in the Bagmati Province for the fiscal year, 2081/82BS, but the achievement stood at 3.7 percent.