Kathmandu, May 21: Bagmati Province alone is projected to contribute 36.7% to Nepal’s economy in FY 2025/26, highlighting widening provincial economic disparities, according to the National Statistics Office (NSO).
Bagmati’s economy is estimated at Rs. 2.42 trillion out of the national GDP of Rs. 6.6 trillion, while Karnali is expected to contribute only 4.2% (Rs. 277 billion) and Sudurpaschim 7% (Rs. 464 billion). Koshi’s share stands at 15.8%, followed by Lumbini at 14.2%, Madhes at 13.1%, and Gandaki at 9%.
The NSO projects Bagmati to record the country’s highest provincial growth rate at 5.40%, followed by Gandaki at 5.01%, both exceeding the national growth estimate of 3.85%. Madhes is expected to post the lowest growth rate at 1.31%, while Karnali, Lumbini, Koshi and Sudurpaschim are all projected to remain below the national average.
The report also shows a decline in economic performance in Madhes and Karnali compared to the previous fiscal year.
Sector-wise, agriculture remains the largest contributor to provincial economies across Nepal except in Bagmati, where wholesale and retail trade dominate. Trade is also expected to be the second-largest contributor in Koshi and Madhes, while public administration and defence rank second in Gandaki and Karnali. Education services are projected to hold the second-largest share in Lumbini and Sudurpaschim. #Nepal
