Karnali plans to post around 10 percent economic growth

The Karnali Province Planning Commission has initiated discussions on the final draft of its second five-year plan, covering fiscal years from  2024/25 to 2028/29. The draft envisions establishing good governance and fostering a productive, employment-oriented economy to create a prosperous Karnali grounded in social justice. It sets an ambitious target of achieving a 9.9% economic growth rate over the next five years.

The first five-year plan had projected an economic growth rate of 8.8% but fell short, achieving only 4.1% during its implementation, which concludes this year.

The Commission has also released a five-year investment framework, estimating a total investment of NPR 5,202 billion in agriculture, industry, and service sectors to drive prosperity in the province. The framework allocates 17% of the total investment to agriculture, with 62.2% from public investment, 33% from the private sector, and 5% from cooperatives.

The industrial sector accounts for 36% of the total investment, with contributions split as 48% from public investment, 49% from the private sector, and 3% from cooperatives. For the service sector, 46.6% of the total investment is allocated, with 49% from public investment, 46% from the private sector, and 5% from cooperatives.

To achieve its vision of a prosperous Karnali, the plan emphasizes six "game-changing" projects focused on production and employment based on a green economy, land management and cooperative development, mineral exploitation, industrial and commercial development, and tourism.

Vice Chair of the Commission, Surya Nath Yogi, explained that these projects are designed to transform Karnali Province into a hub of sustainable development and inclusive economic growth.