Pokhara historically was the staple town for trade between the fertile plains of India and the Terai  (after the  malaria eradication )and the mountainous regions, even Tibet/China . The chain of Newari warehouses (rebuild in the old style after the devastating fires of 1934 and 1949) along the former trade route still remind of this specific past.

With the opening up of the region in the seventies by the highways to India (Sunauli) and Kathmandu and in the early nineties the highway road t Baglung, the regional trade function has shifted to the smaller towns near to the specific hinterland.

With its assignment as Headquarters of the Western Development Region the function of Pokhara has shifted from trade to regional service center. Trade largely has gone down to local trade and with only a marginal production by the industry, trading of manufactured goods has hardly taken off.

The commerce, sub sector has benefited from the growth of the population and the improved economic climate in Pokhara Kaski District. The number of establishment has at least kept pace with the population increase, while a greater diversity of products has come on the market.

The commerce sub-sector furthermore has benefited from the increase of tourists visiting Pokhara. Catering for this sector, however, needs to be improved and more professionalized, as presently almost all shoot-outs tend to sell the same products so there is little diversification to keep the buyers interested. The competition from Kathmandu is large, as Kathmandu offers a greater variety of products at lower prices.

Most of Pokhara’s commercial establishments are still small , with few people engaged  in the activities per establishment . They generally are catering at a small , rural town level.

The Pokhara Chamber of Commerce and Industry survey of 1999 showed a total of 4,047 establishments with average two people engaged per establishment (one owner, one employer). The total number of workers in the trade and commerce sector therefore has been calculated at 8,094 persons.

"This snap features modern super market within Pokhara. "

Industry Sector

In 1969 a Regional Study of Pokhara Valley reports that the following industrial activites are prevailing in Pokhara Valley.

-         production of kitchen utensils.

-         hand-looming (woolen blankets)

-         gold and silver smith jewelry

-         small rice and flour mills

-         carpentry

-         sawmills

-         breads production

-         match factory

-         pottery

-         printing shops

-         distillery

In 1974 the Physical Plan records that the manufacturing sector employ 3.9% of the economic potential active population or as worked out in chapter III .1.3 . a total number of 310 workers. This on a total number of residents of 20.611(1971 census of 13 wards).

The regional report and the Physical Pan are in support of the development of an Industrial Estate, as this is expected to produce employment for the increasing population (which was expected to grow from 20.611 in 1971 to 56.549 by 1991).Although the Industrial estate was developed it has done little else as to concentrate industrial production activities at a specific location. It has hardly promoted industrial development in Pokhara.

A survey executed under the Rural Urban Partnership Project (RUPP) in 1999 found 238 industrial establishments with 1,887 people engaged in the activities. This corresponds with 3.7% of the economic full time active population by 2000.The production industry therefore has only been able to maintain its share in Pokhara’s employment distribution.

The construction industry has boomed since 1974. In the Physical Plan of 1974 it is indicated that only 0.7% of the economic full time active are engaged in the construction sector. This has been calculated in chapter III .1.3 as 55 persons.

With the assignment of Pokhara as Headquarters of the Western Development Region offices and staff quarters had to be build for the regional representatives of the departments and for the health care and educational facilities. Additionally tourist facilities as hotels, lodges and restaurants have been erected, while also residential units have been constructed to hours the eight fold increased (from 3,000 units in 1971 to 25,0000 units in 2000).

To meet the construction demands the construction industry sub sector has grown to engage 8,250 workers by 2000 which is almost 16% of the economic full time active work force.