Find out how the UK will respond to opportunities and challenges, what is being achieved for the UK and who we are working with.
The Department for International Development (DFID) closed on 2 September 2020 and merged with the Foreign and Commonwealth Office (FCO) to create the Foreign, Commonwealth and Development Office.
Information on this page may not be current or correct. Up to date Information on development work in Nepal is available on this page
Following successful elections in late 2017, Nepal is now implementing its new Federal Constitution, agreed following the 10-year civil war. The Constitution has the potential to give more Nepalese an economic and political stake in the country’s future and strengthen the foundations of both stability and prosperity.
Nepal has the potential for higher, inclusive economic growth through the development of hydro-electric power and through sectors like agro-processing, light manufacturing and tourism, which present significant opportunities for UK business, and trade with India and China. This potential is hampered by complex investment rules and processes, costly and unreliable energy supply, poor transport infrastructure, political instability, weak institutions, poor governance and gender disparity. Nepal is highly vulnerable to natural disasters and climate change which can push populations back into poverty, destroy infrastructure and undermine growth. The 2015 earthquakes caused extensive damage and Nepal remains at high risk of a catastrophic earthquake.
Nepal is the 16th poorest country in the world and the second poorest in Asia (after Afghanistan) in terms of per capita income. 23% of the population of 28 million people live on less than $1.25 a day. The poorest people live in the inaccessible west of the country or are from the dalit (untouchable) caste. High unemployment means that about 1,500 Nepalis migrate for work every day to countries such as the Gulf states, Malaysia and India. Nepal is ranked 145th in the world in the Human Development Index, a situation which has not improved significantly since emerging from conflict in 2006.
To find out how the UK will respond to the opportunities and challenges, what is being achieved for the UK and who we are working with please read the full country profile for country profile for Nepal.
For detailed information on our programme and what the UK spends on development in Nepal, see:
- Development Tracker to explore international development projects funded by the UK government by country and sector
- International Development Funding finder tool for funding opportunities by country, sector and organisation type
- Research for Development Outputs for outputs from DFID funded research projects and programmes
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