Find out how the UK will respond to opportunities and challenges, what is being achieved for the UK and who we are working with.

Nepal has the potential for higher, inclusive economic growth through the development of hydro-electric power and tourism, both of 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 and poor governance. 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 16 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. Nepal’s poverty and inequality is reflected in its ranking for human development; it is ranked 145 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:

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DFID Nepal

British Embassy
PO Box 106