Kathmandu - Economy

Economy

Kathmandu’s trade is an ancient profession that flourished along an offshoot of the Silk Road linking India and Tibet. From centuries past, Lhasa Newar merchants of Kathmandu have conducted trade across the Himalaya and contributed to spreading art styles and Buddhism across Central Asia. Other traditional occupations are farming, metal casting, woodcarving, painting, weaving and pottery. Kathmandu is famous for trading Nepalese Lokta paper, a paper made from Lokta (Daphne bhoula or Daphne papyracea) and Pashmina shawls which are very beautiful, light and warm and are used by women in Kathmandu valley to survive the cold winters.

Kathmandu is the most important industrial and commercial centre in Nepal, serving as the headquarters of most companies, banks and organizations. The major economic hubs are the New Road, Durbar Marg, Ason and Putalisadak.

The city's economic output is worth more than NRs. 170 billion per year. Kathmandu exports handicrafts, artworks, garments, carpets, pashmina, paper etc. and trade accounts for 21% of its finances. Manufacturing comes next in importance and accounts for 19% of the revenue that Kathmandu generates with garments and woolen carpets being the most notable manufacturers.

The top five countries importing Nepali handicrafts are the US (Rs. 223 million), Germany (Rs. 87 million), Japan (Rs. 74 million), the U.K. (Rs. 69 million) and Canada (Rs. 51 million).

Other money making sectors in Kathmandu include agriculture (9%), education (6%), transport (6%), and hotels and restaurants (5%). Although some of Nepal's wealthiest citizens live in Kathmandu, much of the city is living in poverty with a per capita income of just US $400 (World Bank, 2008).