About Nepal

About Nepal

Nepal remains one of the world’s poorer countries, with an economy heavily reliant on agriculture, remittances, and tourism. While the national poverty rate has gradually declined to about 20 percent, inequality has become a growing concern. The United Nations’ recent assessment warns that Nepal is lagging behind on SDG 10 (reducing inequalities), evidenced by disparities in wealth distribution and access to services.

As of 2023, the Gini index for Nepal stands around 0.30–0.32, indicating moderate inequality nationally, but urban areas exhibit larger disparities in consumption and opportunities. For instance, slum dwellers in cities often lack stable jobs, education, or healthcare, even as urban development progresses around them.

Additionally, social inequalities persist, with historically marginalized groups and women still facing significant gaps in income, literacy, and health outcomes.

IRRT’s programs are deliberately designed to counter these inequities, by funding education for the poor, healthcare for the sick and destitute, and economic opportunities for marginalized entrepreneurs. The Trust directly tackles these dimensions of inequality in its sphere of influence.

In doing so, IRRT complements government efforts and other NGOs, filling critical gaps with targeted assistance.

Map of Nepal

Socio-Economic Overview & SDGs

Nepal’s overall socio‑economic condition clearly shows that the country still faces significant challenges in achieving the Sustainable Development Goals (SDGs). The fact that 20.3 percent of the population lived below the national poverty line in 2022 indicates that economic insecurity remains a persistent issue.

Serious challenges are also evident in the health sector—such as the death of 27 children out of every 1,000 live births before reaching the age of five in 2023, and the maternal mortality ratio reaching 174 per 100,000 live births in 2020. The tuberculosis incidence rate of 229 per 100,000 population further highlights the need to strengthen public health services.

While there has been some progress in the education sector, gender disparities and regional inequalities persist. For example, although the proportion of teachers meeting minimum qualifications at the primary level has reached 96.1 percent, women’s participation in organized learning stands at only 75.8 percent.

In terms of gender equality, women hold 33.1 percent of seats in the national parliament, yet their representation in senior and middle management positions remains limited at only 14 percent. In the area of water and sanitation, only 16 percent of the population had access to safely managed drinking water services in 2022, and nearly 40 percent of the urban population continued to live in slum conditions, underscoring rising urban inequalities.

Furthermore, income inequality remains a concern, with 7.9 percent of the population living below 50 percent of median income in 2022, reaffirming the need for more targeted interventions to advance SDG 10—Reduced Inequalities. Taken together, these indicators demonstrate that Nepal requires multidimensional and sustained efforts to reduce poverty, expand access to health services, promote gender equality, ensure equitable access to education, and guarantee safe drinking water and sanitation for all.

Poverty & Urbanization

  • Population below national poverty line (2022)20.3%
  • Employed population below $2.15 PPP/day (2024)0.2%
  • Unemployment Rate (2017)10.7%
  • Urban population in slums (2022)40%
  • Urban population growth (2024)0.2%

SDG 3: Health & Well-Being

  • Maternal Mortality Ratio (per 100k), 2020174
  • Under-5 Mortality Rate (per 1,000), 202327
  • Neonatal Mortality Rate (per 1,000), 202317
  • Tuberculosis Incidence (per 100k), 2021229
  • Mortality from Cardiovascular /Cancer/Diabetes/Respiratory19.4%

SDG 4: Quality Education

  • Participation in Organized Learning (Total), 202480%
  • Teachers with Min. Qualifications (Preprimary), 202182.4%
  • Teachers with Min. Qualifications (Primary), 202496.1%
  • Teachers with Min. Qualifications (Lower Sec), 202495.2%
  • Teachers with Min. Qualifications (Upper Sec), 202489.8%

SDG 5: Gender Equality

  • Women in National Parliaments (2024)33.1%
  • Women Business & Law Index Score (2023)80.6
  • Female share in senior/middle management (2017)14%
  • Firms with female top manager (2023)10%

SDG 6: Clean Water and Sanitation (2022)

  • Safely Managed Drinking Water (Total, Urban, Rural)16%, 23%, 14%
  • Safely Managed Sanitation Services (Total, Urban, Rural)51%, 45%, 52%
  • Handwashing Facility with Soap & Water (Total, Urban, Rural)64%, 75%, 60%

SDG 10: Reduced Inequalities

  • People living below 50% of median income(2022)7.9%
  • Avg transaction cost of sending remittances(2023)2.5%

COUNTRY INDICATORS

Basic Information

  • Federal Democratic Republic of Nepal
  • Capital: Kathmandu
  • Area: 147,181 sq km (56,827 sq miles)
  • Major languages: Nepali
  • Major religions: Hinduism, Buddhism
  • Currency: Nepalese rupee

Demographics

  • Population: 31 million
  • Growth rate: 1.4%
  • Population density: 198/km²
  • Fertility rate: 2.1% (2016)
  • Working population: 58% (2017)
  • Life expectancy: 68 years (men), 71 years (women)

Economic & Health

  • GDP growth rate: 6.3% (2018)
  • Prevalence of undernourishment: 9.5% (2015-2017)
  • Stunting in children under 5: 36% (2016)
  • Malnutrition (wasting) in children under 5: 9.6% (2016)
  • Maternal mortality ratio: 258 per 100,000 live births (2015)
  • Safe drinking water access: 26.8% (2015)

Data Source: World Bank

Key Development Challenges

Child Malnutrition

36% of children under 5 suffer from stunting, while 9.6% face wasting, highlighting critical nutritional challenges in the country.

Maternal Health

With a maternal mortality ratio of 258 per 100,000 live births, improving maternal healthcare remains a critical priority.

Water Access

Only 26.8% of the population has access to safely managed drinking water services, creating significant health and sanitation challenges.

Earthquake Recovery

Post-2015 earthquake reconstruction continues to face challenges despite significant international funding pledges.