Beyond Nepal’s famed mountains, historic temples, and natural beauty lies an overshadowed reality: poverty. It continues to define the lives of millions, unmasking systemic issues and inequalities that demand urgent attention.
Nepal carries a reality more complex than its allure suggests. When you walk through the streets of Kathmandu, past the awe-inspiring architecture, you might also see the faces of those struggling to survive. People sit along the roadsides, their hands outstretched, hoping for a few coins to ease their hunger.
This is a revealing side of the city that tourists often overlook—where hardship exists in the shadows of grandeur. Despite Nepal’s potential for growth, poverty remains a relentless challenge, deeply rooted in structural inequality.
As of 2022, over 20.3% of Nepal’s population was living below the national poverty line. While the statistics denote progress compared to past figures, a closer look reveals a troubling reality. The poverty rate has barely budged in the last decade, despite national and international efforts to uplift communities. In 2023, the government raised the annual per capita expenditure threshold from $331 to $538 to match rising costs of living. This adjustment highlights how much people continue to struggle with basics like food, shelter, education, and healthcare.
International development efforts, government interventions, and private sector investments seem to have made little lasting difference. Where has all the investment gone, and why does poverty persist despite billions spent?
A Glimpse Behind the Numbers
Statistics alone cannot fully convey the weight of poverty. These numbers reflect the reality of six million Nepalis, many in rural areas where poverty reaches 24.66%, compared to 18.34% in urban regions
Provinces like Sudurpaschim and Karnali face even harsher conditions, with rates of 34.16% and 26.69%, respectively. In rural Sudurpaschim, the poverty rate soars to 40%, where rugged land and scarce opportunities leave families vulnerable
Erratic weather, deforestation, and climate change worsen conditions. Events like the 2015 earthquake and the COVID-19 pandemic have further strained poverty reduction efforts, with many Nepalis losing jobs and incomes.
The Cost of Surviving
The poorest 20% spend 67% of their income on food, while the richest 20% in Kathmandu spend less than 30%. This disparity reveals a sharp economic divide.
Although remittances temporarily sustain households, they are not a long-term solution. Migrant workers endure harsh conditions abroad while their families struggle at home. Migration remains the economic backbone for many, exposing the lack of sustainable employment opportunities within Nepal.
Poverty Beyond Economics
Poverty is more than a lack of money—it’s about limited access to quality education, healthcare, and basic services. While food insecurity persists, healthcare access is another major issue. Despite improvements, over half the population still lives more than 30 minutes from a government hospital.
Nepal’s challenges go beyond economic issues—they stem from structural problems. Stagnation in poverty reduction is due to poor governance, political instability, and economic mismanagement. Despite trillions allocated annually, the government spends only a small fraction on creating jobs and boosting growth.
The Human Face of Poverty
In a rural village, Pramila, 24, from Kailali, carries firewood on her back to support her three children. She dreams of sending them to school but struggles to afford the fees. “I earn 500 rupees per day as a labourer. It’s not enough to feed my family, let alone educate them,” she says.
Padam, 60, from Jhalari, waits for news from his son working in the Gulf. His remittances keep the family afloat, but the emotional and financial toll is immense. “I haven’t seen my child in six years. He contacts me once a month when he sends money. I only know he’s alive because he hasn’t appeared in the news yet,” says Padam.
Remittances provide temporary relief but fail to address systemic challenges.
Moving Forward
As Nepal prepares its 16th periodic plan, the focus must shift toward long-term solutions that empower people to lift themselves out of poverty. Investments in jobs, rural infrastructure, education, and healthcare are crucial. Accountability and transparency in poverty alleviation programs are equally important.
Poverty in Nepal is not just a statistic—it’s the daily reality for millions. For the country to move forward, it must address the root causes of poverty and ensure a dignified life for all.
Pratikshya Bhatta is a junior editor with Nepal Connect