ABSTRACT The survey is part of the project work on "Strengthening Central Bureau of Statistics in Socio-economic Statistics and National Accounts," supported by UNDP. In spite of the efforts made by varioius agencies in producing statistics, a number of key areas are still faced with critical data gaps. While activities of the Central Bureau of Statistics (CBS) remained tied up for a long time in conducting periodic censuses and their analyses, the demand for current economic statistics for development planning and policy formulation are being felt to be ever increasing. it was realised that the existing critical data gaps, could be fulfilled only by conducting sample surveys in different areas on a regular basis. The Multipurpose Production Survey is indeed a step forward in thsi direction initiated by the CBS to reduc the critical data gaps gradually. The undertaken survey had envisaged to generate statistics to augment the task of improving National Accounts estimates and serve other users in various fields. The Multipurpose Production Survey (Urban) includes altogether 1500 sub wards (to be considered as an enumeration block) from the entire 33 towns. Sub-wards consisted of 150-200 dwellings. On the basis of level of urbanization of towns, towns were categorized in three levels - Urban, Semi Urban and Partly Urban. Reference period was the average of the twenty months stretching from April 1989 to November 1990.As shown by the survey result, percentage of households engaged in these type of economic activities is higher (26.3%) in the towns under the category "Urban" and are lower in other categories with 21.9% in the "Semi-urban" and 20.7% in the "Partly urban". Limitations of the survey: As any statistical investigation, the MPS (Urban) has its own limitations. Despite the importance of mapping operation carried out for this survey it should be realised that the operation was more experimental and accurate results can not be expected from a firsthand attempt like this. Besides the survey was seriously affected by the poor state of maps and unavialiability of auxiliary informations required. Moreover, there was no clarity of ward boundaries even in among local authorities and residents, as the boundaries were delineated not strictly on a scientific way and were frequently changed for political reas ons. pnder the circumstances, initiation by CBS to prepare subsequent maps for survey purpose faced serious problems . Possibility of omission of some households especially in the large cities cannot be rejected. The aspect of reference period regarding the necessity of sub-sampling of time over a year for data collection was mentioned in the Report on the MPS (Rural). Situation could not be improved in the MPS (Urban) too. In order to avoid the possibility of seasonal effect, intensity characteristics like number of months worked during the year, number of working days during the month etc. were used while estimating the annual aggregates. SCOPE The MPS (Urban) has the same scope as that of the MPS (Rural) survey comprising the sectors viz. - Small Scale Manufacturing and Cottage Industry (SMCI) - Retail Trade - Non-Mechanized Transport. For the purpose of conducting a separate statistical investigation in the future, the households engaged in activitise belonging to personal services were also listed. The scope of the Multipurpose Production Survey includes: - Household level economic activities - Small scale manufacturing and cottage industries including Non-mechanized transportation (animal pull, manpull transport and porter services) by households. - Retail trade service activities. Number of household workers by sex, income and expenditure of households on activities of Non-mechanized services, cottage industry and retail trade. - Intermediate cost - Raw materials used in cottage industry ,nonmechanized transportation and in retail trade service produced by households - Compensation of employees,tax paid. COVERAGE Geographic Coverage National Urban Area only Universe All households in Urban areas of all 33 towns of Nepal. Though this is basically a household survey in nature, some parts of the investigation necessarily had to be done through establishments and hence an overlap between the two. This was true especially in the case of manufacturing and retail trade.