Economy in Kathamandu

Kathmandu’s trade is an ancient profession that flourished along the trade route between India and Tibet. Trading caravans of merchants were famous for trading with Lhasa. Other trades in which people have been involved since ancient times are Farming, metal casting, woodcarving, painting, waving and pottery are other popular traditional occupations.^[45]

Even now Kathmandu is the most important industrial and commercial centre of Nepal and the headquarters of most companies, banks and organizations in the country are located here. The major economic hubs are the New Road of Kathmandu, the Durbar Square, Ason and Putalisadak.^[45]
The city's economic output is worth more than NRs. 170 billion per year.^[46] Kathmandu exports handicrafts, artworks, garments, carpets, pashmina, paper etc. and trade accounts for 21% of its finances.^[45][46] 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.^[46]
The top five countries importing Nepali handicrafts are the U.S.A. (Rs. 223 million), Germany (Rs. 87 million), Japan (Rs. 74 million), the U.K. (Rs. 69 million) and Canada (Rs. 51 million).^[46]

In November 2009, The Kathmandu Post reported that Nepali handicraft products to third countries had decreased by 8.1% during the first quarter of the current fiscal year compared to the same period last year.^[47] According to the Federation of Handicraft Associations of Nepal (FHAN), the fall was mainly due to a decrease in the export of pashmina products, woollen goods, silk products, handmade paper products and wood crafts, of which Kathmandu is renowned for.^[47] Pashmina exports, which is one of the major export products, declined by 31.26% to Rs. 154 million and woollen commodities decreased by 10.94% to Rs. 159 million.^[47] Silk products had declined by 26.88% and handmade paper products and wood crafts declined by 16.55% and 31.38% respectively.^[47] According to data published by the FHAN, the export of textile products declined by 14.87% to Rs. 487 million against Rs. 572 million during the same quarter last year.^[47]

However, non-textile products has grown by 3.63%, leargely to the growing production and export of silverware which had increased by 18.09%, accounting for Rs. 121 million as compared to Rs. 102 million in 2008.^[47]

Other money making sectors in Kathmandu include agriculture (9%), education (6%), transport (6%), and hotels and restaurants (5%).^[46] 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).^[8][48]