1.4 Economic Aspects of Nepal

1.4 Economic Aspects of Nepal 🌍📈


1.4.1 Economic Indicators (Economic Growth, GDP, GNP, Per Capita Income)

💹 Economic Growth

Economic growth is the positive change in the indicators of an economy. It is the increment amount of goods and services produced by an economy. Economic growth is conventionally measured as the percentage rate of increase in Gross Domestic Product (GDP). But, in modern sense it is measured in term of GDP as well as GNP and per capita Income.

🌍 World Economic Growth

The baseline forecast is for the world economy to continue growing at 3.2 percent during 2024 and 2025, at the same pace as in 2023.

🇳🇵 National Economy

Economic Growth (Nepal's Economy Forecasted by Various Sources)

Indicator (Economic Growth)
Unit (Percentage)

National Institutions or Agencies

Annual Growth Rate of GDP at basic prices (National Statistics Office)

2.31% (FY: 2079/80)

16th Plan (FY: 2081/82 - FY: 2085/86)

3.54% (FY: 2080/81)

Long-term Vision (2100/01)

7.3% (FY: 2085/86)

Budget (FY: 2081/82)

10.5% (up to 2100)

International Institutions or Agencies

Asian Development Bank (ADB)

1.9% (2023/24)

3.6% (2024/25)

World Bank (WB)

3.9% (2023/24)

3.3% (2024/25)

International Monetary Fund (IMF)

0.8% (2023/24)

3.1% (2024/25)

Source: IMF World Economic Outlook, April 2024 (Projected*, Targeted**, Revised***) Nepal Development Prospects, World Bank, April 2024 Asian Development Outlook, April 2024


📊 Sectoral Structures of GDP

Share in GDP (in Percent) at Current Prices

Sectors
FY: 2021/22 (2078/79)
FY: 2022/23 (2079/80)
FY: 2023/24* (2080/81)

Primary Sector (Agriculture)

25.0

24.4

24.6

Secondary Sector (Industrial)

13.7

13.1

12.5

Tertiary Sector (Service)

61.3

62.5

62.9

Agriculture

24.7

23.9

24.1

Non-Agriculture

75.3

76.1

75.9

Real GDP Growth (Percent) at Basic Prices

Sectors
FY: 2021/22
FY: 2022/23
FY: 2023/24*

GDP Growth

5.28

2.31

3.54

Primary Sector

2.5

2.7

3.0

Secondary Sector

10.8

1.4

1.2

Tertiary Sector

5.3

2.4

4.5

Agriculture

2.35

2.76

3.05

Non-Agriculture

6.54

2.13

3.75

Source: National Statistics Office, April 30, 2024 (Projected*)


👤 Per Capita Income

  • Per capita income is a measure of the amount of money earned per person in a nation or geographic region.

  • It can be used to determine the average per-person income and evaluate the standard of living and quality of life.

  • It is calculated as:

Per Capita Income=National IncomeTotal Population\text{Per Capita Income} = \frac{\text{National Income}}{\text{Total Population}}

📈 Per-Capita Income (Macroeconomic Indicator)

Description
FY 2079/80
FY 2080/81*

Per capita GDP (US $) at current price

1,389

1,434

Per capita GNI (US $) at current price

1,405

1,456

Per capita GNDI (US $)

1,755

1,843

Source: National Statistics Office, 2081 (Projected*)


🏙️ Economic and Social Conditions of Provinces

Current Status in: Economic Survey FY 2023/24

Of the estimated GDP (at current prices) of 57.484 billion in FY 2023/24, the share of Bagmati province is the highest (36.4%) and Karnali province the lowest (4.3%).

📍 Province-wise GDP Growth Rate at Consumer Price (In %)

Fiscal Year (FY)
Koshi
Madhesh
Bagmati
Gandaki
Lumbini
Karnali
S. Pashchim
Nepal

2021/22

5.6

5.1

6.2

5.9

5.2

4.8

4.7

5.63%

2022/23

2.1

1.5

1.8

3.3

2.0

2.0

1.5

1.95%

2023/24*

3.5

3.8

4.0

4.6

4.1

3.4

3.4

3.87%

Projected*


📊 Province-wise Social and Economic Indicators (FY 2023/24)

Indicators
Nepal
Koshi
Madhesh
Bagmati
Gandaki
Lumbini
Karnali
S. Paschim

1. Administrative & Demographic

Local Levels

753

137

136

119

85

109

79

88

Population (%)

100

17.0

21.1

21.0

8.3

17.7

5.8

9.1

Area (%)

100

17.6

6.6

13.8

15.3

11.8

21.6

13.3

2. Economic & Social

Economic Growth** (Consumer Price)

3.87

3.5

3.8

4.0

4.6

4.1

3.4

3.4

GDP Contribution** (Province-wise)

100

15.8

13.1

36.4

9.1

14.3

4.3

7.1

GDP Per Capita**

1,434

1,336

892

2,484

1,557

1,159

1,066

1,111

Hydroelectricity* Generation (MW)

3,060

577

25.0

1,196

933

58

16.0

171

Access to Electricity* (%)

97.7

95.3

100.0

99.5

99.3

98.3

68.5

83.5

Forest (%)

100

18.8

3.9

18.7

12.8

16.2

13.5

16.1

Source: Economic Survey FY 2080/81 *Up to mid-March 2024 | **Projected


1.4.2 Infrastructures of Development of Nepal 🏗️

🏛️ Infrastructures of Development

Nepal has pursued the approach of developing multiple sectors of the economy. The major aspects are agriculture, industry, trade, tourism, foreign employment, and human resources, prioritized in government policies, plans, and strategies.

  • Before 1990, the government's role was prominent in all economic spheres.

  • After the restoration of democracy in 1990, Nepal adopted an open & liberal market economy.

  • The concept shifted from government-led to private sector-led economic development.

  • Today, Nepal follows a three-pillar economy with public, private, and cooperative sectors actively participating.

  • Public-private partnership (PPP) is highly prioritized for smooth economic development.


🌾 Agriculture

  • Agriculture is an age-old occupation concerned with crop and livestock production.

  • Traditional base of Nepali economy.

  • Contributes more than one-fourth of GDP.

  • According to National Agricultural Census 2078, 62% of households are engaged in agriculture.

  • According to Population Census 2078, 57.3% of the population has agriculture as their primary occupation.

  • Nepal imports a large amount of agricultural products every year, with an increasing trend.

  • 20-Year Long-Term Agriculture Development Strategy 2072 implemented from FY 2073/74.

  • By the end of the 16th Plan, agriculture's contribution to GDP will decrease from 23.9% to 21.0%.

  • Employment in agriculture is declining due to technology, professionalism, and expansion of the service sector.

  • Gross value added of the agriculture sector is estimated to grow by 3.05% in FY 2023/24.

  • Contribution of agriculture (including forest and fisheries) to GDP in FY 2023/24: 24.1%.

Five Major Food Crops: Paddy, Maize, Wheat, Millet, Barley. Major Cash Crops: Jute, Sugarcane, Tobacco, Oil products. District with Highest Paddy Production: Jhapa 🍚 First Irrigation Project: Chandra Canal (1965 B.S.) 🚜


☕ Coffee Farming

  • In 1938 AD, hermit Hiralal Giri brought coffee seeds from Myanmar and planted them in Aapchar, Gulmi District for the first time in Nepal.

  • National Tea and Coffee Development Board (NTCDB) established in 1993 under the Ministry of Agricultural Development.

  • First Coffee Day observed in 2062 B.S.

  • World's largest coffee consumer: Finland ☕

  • World's largest coffee producer: Brazil 🌎


📊 Agriculture Census

  • Conducted by Central Bureau of Statistics every 10 years.

  • First census: 2018 B.S. (1961/62 AD).

  • Agriculture Census 2021/22 is the seventh census.

  • Data collection: May 29 to June 2, 2022.


🏘️ One Village One Product Program (OVOP)

  • Launched on July 17, 2006 as a pilot project (Public Private Partnership).

  • Partners: Ministry of Agriculture Development (MoAD) and Federation of Nepalese Chamber of Commerce and Industry (FNCCI).

  • Initially launched in 7 districts with 4 products: Sweet oranges, Lapsi, Rainbow trout fish, Bel.

  • Extended to almost all districts within 11 years.

  • OVOP is a Japanese philosophy implemented in Nepal from FY 2063/64 budget.


Place/District
Famous/Popular For

Aapchaur, Gulmi

Coffee Farming

Aathrai, Bhojpur

Khukuri

Malneta, Salyan

Ginger

Krishna Gandaki

Saligram

Dailekh

Leather

Jumla

Apple

Chitlang, Makwanpur

Radish

Tikani, Bode, Bhaktapur

Beaten paddy

Khokna, Lalitpur

Oil

Chitwan

Mustard

Bhaktapur

Curd

Kaski

Muffler

Dhunbeshi, Dhading

Sugarcane

Bhaktapur

Pot of soil

Sikarbesi, Nuwakot

Rice

Biratnagar

Jute

Baglung, Doti

Pipe of Hookah

Palpa

Dhaka

Pherping, Kathmandu

Pear

Achham

Milky Cow

Illam/Jhapa

Tea

Banke, Bardia

Cotton

Pokhara/Dhankuta

Orange

Jhapa

Paddy


📈 Current Status in: Economic Survey FY 2023/24

  • Contribution of agriculture (including forest and fisheries) to GDP: 24.1% (FY 2023/24), up from 23.92% in FY 2022/23.

  • Average annual growth rate of agriculture in the last decade: 2.9%.


🌳 Forests and Soil Conservation

  • According to FAO, forests cover 31.0% of the world's total area.

  • 54.0% of the world's forest area is covered by Brazil, Canada, China, Russia, and the USA.


🏭 Industry

  • After 1990, Nepal adopted a liberal and open market economy.

  • Industrial Enterprises Act 2076 categorizes industries based on production, nature, service, and investment.

  • Privatization Act 2050 promoted the role of the private sector.

  • 11 industrial estates exist (10 operational), with plans to increase.

  • Investment Board (chaired by PM), Industrial Security Force, Special Economic Zone (SEZ) operational from Mangsir 02, 2071.

  • Industrial corridor and SEZ embraced as state policies.


🏢 Classification of Industry

Based on Production, Nature, and Service:

  1. Agriculture and forestry-based

  2. Production-oriented

  3. Energy-oriented

  4. Mining

  5. Tourism

  6. Construction

  7. Information and communication technology

  8. Service

Based on Investment:

Type
Fixed Capital (NPR)

Micro Industry

Up to 2,000,000

Cottage Industry

Traditional skill and technology-based

Small Industry

Up to 150,000,000

Medium Industry

150,000,001 - 500,000,000

Large Industry

Above 500,000,000


📜 Provisions in the 16th Plan

  • By the end of the 16th Plan, the contribution of the industrial sector to GDP will reach 5.6%.


📊 Current Status in: Economic Survey FY 2023/24

  • Output of the industrial (manufacturing) sector in FY 2023/24: negative 1.6%.

  • Contribution to GDP: 4.87% (down from 5.16% in previous year).

  • Average growth rate of industrial production in the last 10 years: 2.59%.

  • Average contribution to GDP in the last 10 years: 5.6%.


🏢 Industrial Estates

  • As of mid-March 2024:

    • Total industries established in 10 industrial zones: 703

    • Currently operational: 619

    • Under construction: 42

    • Closed: 22


🤝 Trade

  • Nepal has pursued a liberal trade policy since 1990.

  • Trade liberalization began with the Economic Reform Program 1991.

  • Nepal became a member of WTO on April 23, 2004 (147th member).

  • Double Tax Avoidance Agreement (DTAA) and Bilateral Investment Promotion and Protection Agreement (BIPPA) are key trade instruments.


📜 Double Tax Avoidance Agreement (DTAA)

  • Avoids double taxation on income earned in another country.

  • First DTAA: with Norway (1996).

  • Last DTAA: with Bangladesh (2019).

S.N.
Country
Date of Agreement

1

India

Jan 18, 1987 (Revised Nov 27, 2011)

2

Norway

May 13, 1996

3

Thailand

Feb 02, 1998

4

Sri Lanka

July 06, 1999

5

Mauritius

Aug 03, 1999

6

Austria

Dec 15, 2000

7

Pakistan

Jan 25, 2001

8

China

May 14, 2001

9

South Korea

Oct 05, 2001

10

Qatar

Oct 15, 2007

11

Bangladesh

Mar 05, 2019 (MOU signed)


🤝 Bilateral Investment Promotion and Protection Agreement (BIPPA)

  • Protects and promotes foreign direct investment (FDI).

  • Nepal has signed BIPPA with 6 countries.

S.N.
Country
Date of Agreement

1

France

May 02, 1983

2

Germany

Oct 20, 1986

3

United Kingdom

Mar 02, 1993

4

Mauritius

Aug 03, 1999

5

Finland

Feb 03, 2009

6

India

Oct 21, 2011


🏢 Public Enterprises (PEs)

  • Established post-WWII for welfare state and planned development.

  • First PE: Biratnagar Jute Mill (1936).

  • By the end of the Seventh Five-Year Plan (1985-1990), total PEs: 62.

  • As of now, total PEs: 44 (20 fully owned, 24 majority owned).


🏛️ Ownership Structure

Sector
Number of PEs

Industrial

10

Trading

4

Services

11

Social

5

Public Utility

5

Financial

9

Ministry-wise Distribution:

  • Ministry of Industry, Commerce and Supply (MoICS): 13

  • Ministry of Finance (MoF): 8

  • Ministry of Physical Infrastructure and Transportation (MoPIT): 5

  • Ministry of Energy, Water Resources and Irrigation (MoEWRI): 4

  • Ministry of Communication and Information Technology (MoCIT): 3

  • Ministry of Culture, Tourism and Civil Aviation (MoCTCA): 3

  • Ministry of Agriculture and Livestock Development (MoAD): 3

  • Ministry of Forests and Environment (MoFE): 2

  • Others: 3 (MoUD, MoWS, MoEST)


📊 Current Status in: Economic Survey FY 2023/24

  • Total PEs: 44 (20 fully owned, 24 majority owned).

  • In operation: 41 (26 profit, 15 loss).

  • Zero transaction: 3.

Top 5 Profit-Making PEs (FY 2022/23):

  1. Nepal Oil Corporation (NOC)

  2. Nepal Electricity Authority (NEA)

  3. Nepal Tele-Communication Company Limited (NTC)

  4. Citizen Investment Trust (CIT)

  5. Deposit & Credit Guarantee Fund

Top 5 Loss-Making PEs (FY 2022/23):

  1. Nepal Airlines (NAC)

  2. Nepal Water Supply Corporation (NWSC)

  3. Dairy Development Corporation (DDC)

  4. Udaypur Cement Limited

  5. Nepal Television (NTV)


🗺️ Tourism

  • High potential for economic development.

  • Constitution of Nepal includes policies for developing tourism as a key driver of the national economy.

  • National Tourism Strategic Plan 2016-2025 aimed to attract 2.5 million tourists by 2025.

  • Tourism Policy 2065 aims to diversify and expand tourism.

  • Nepal's tourism brand: "Naturally Nepal: Once is Not Enough".


✈️ Tourism Development

  • Open-sky policy adopted to promote foreign and private investment in aviation.

  • Visit Nepal 2020 aimed to attract 2 million tourists (suspended due to COVID-19).

  • Decade-long tourism development plan (2023-2032) in implementation.

  • Religious tourism promoted (Lumbini, temples, stupas, etc.).

  • Eco-tourism, rural tourism, home-stay facilities promoted.


🗓️ Tourism Campaigns

Year
Domestic Tourism Campaign
International Tourism Campaign

2013

Jalala - Dhorpatan

1998: Visit Nepal

2014

Bideha - Mithila - Sahalesh

2002-2003: Destination Nepal

2015

Birat - Mechi - Pahadi Tourism

2011: Together for Tourism

2016

Ruru - Pokhara - Annapurna - Masalu Tourism Year

2012: Visit Lumbini

2017

Simara - Kathmandu - Langtang Tourism Year

2020: Visit Nepal Year

2018

Arun - Sagarmatha Tourism Year

-

2019

Chisapani - Khaptad - Ramarosan Tourism Year

-


🏆 Tourism Facts

  • First tourist: Emperor Ashoka (with daughter Charumati) during Kirat rule.

  • World Tourism Day: September 27 (since 1980).

  • WTO Headquarters: Madrid, Spain.

  • Theme 2023: "Tourism and Green Investment".

  • Most visited country: France.

  • Nepal ranked 8th in Lonely Planet's "10 Best Countries to Visit in 2024".


🌿 Types of Tourism

  • Eco-Tourism: Coined by Héctor Ceballos-Lascurain (1983). Adopted in Nepal from the 6th Five-Year Plan.

  • Controlled Tourism: Eco-friendly, people-friendly, culture-friendly. Adopted by Bhutan.

  • MICE Tourism: Meetings, Incentives, Conferences, Exhibitions.

  • Sustainable Tourism: Considers economic, social, environmental impacts.

  • Rural Tourism: First destination in Nepal: Sirubari, Syangja.

  • Agro-Tourism: Combines tourism and agriculture.


📊 Current Status in: Economic Survey FY 2023/24

Top 5 Tourist Arrivals by Country (2023):

  1. India: 31.52%

  2. USA: 9.9%

  3. China: 6.0%

  4. UK: 5.2%

  5. Australia: 3.82%

Purpose of Visit:

  • Recreational/Holiday: 62.5%

  • Trekking/Mountaineering: 15.2%

  • Religious: 13.1%

  • Others: 9.2%

  • Average stay: 13.2 days.

  • Contribution to GDP: 1.65% (projected to rise to 1.98%).


📈 Tourism Fact Sheet: 2021–2023

Year
Avg. Stay (days)
Top 5 Nationalities
Purpose of Visit
Avg. Expenses (US$/day)

2021

15.5

India, USA, UK, China, Bangladesh

Recreational 66.8%

48

2022

13.1

India, USA, UK, Australia, Bangladesh

Recreational 64.7%

40.5

2023

13.2

India, USA, China, UK, Australia

Recreational 62.5%

41


📊 Major Tourism Indicators: 2021–2023

S.N.
Indicator
Unit
2021
2022
2023

1

Tourist Arrivals

Persons

150,962

614,869

1,014,882

2

Avg. Expenses/Visitor/Day

US$

48

40.5

41

3

Length of Stay

Days

15.5

13.1

13.2

4

International Airlines Operating

No.

20

27

31

5

Bilateral Airline Agreements

No.

41

41

41

6

All-Season Airports (Black-topped)

No.

37

41

41

7

Contribution to GDP

%

1.7

2.1

-

8

Peaks Opened for Mountaineering

No.

414

414

414


⚡ Hydropower

  • Theoretical potential: 83,000 MW

  • Technically & economically viable: 42,000 MW

  • Electricity development started in 1911 AD.

  • Electricity Act 2049 opened sector to private investment.

  • Energy Day: Jestha 9.

  • Decade of Energy and Water Resource: 2075–2085 BS.

  • 97.7% of population has access to electricity.


🏔️ Major Hydropower Plants (>1 MW)

S.N.
Project
Capacity (MW)
Promoter
Address

1

Khimti-I

60.000

Himal Power

Dolakha & Ramechhap

2

Tinau

1.024

NEA

Palpa

3

Seti

1.500

NEA

Kaski

4

Marsyangdi

69.000

NEA

Tanahu

5

Kulekhani-I

60.000

NEA

Makawanpur

6

Trishuli

24.000

NEA

Nuwakot

7

Gandak

15.000

NEA

Nawalparasi

8

Panauti

2.400

NEA

Kavrepalanchok

9

Tatopani

2.000

NEA

Myagdi

10

Kulekhani-II

32.000

NEA

Makawanpur

11

Devighat

14.100

NEA

Nuwakot

12

Sun Koshi

10.050

NEA

Sindhupalchok

13

Andhi Khola

9.400

Butwal Power

Syangja

14

Jhimruk Khola

12.500

Butwal Power

Pyuthan

15

Puwa

6.200

NEA

Ilam

16

Modi Khola

14.800

NEA

Parbat

17

Kali Gandaki A

144.000

NEA

Syangja

18

Upper Bhotekoshi

45.000

Bhotekoshi Power

Sindhupalchok

19

Chilime

22.000

Chilime Hydropower

Rasuwa

20

Indrawati-III

7.500

National Hydropower

Sindhupalchok

21

Madhya Marsyangdi

70.000

NEA

Lamjung

22

Chameliya Khola

30.000

NEA

Darchula

23

Kulekhani-III

14.000

NEA

Makawanpur

24

Upper Tamakoshi

456.000

Upper Tamakoshi Hydropower

Dolakha

25

Upper Trishuli 3A

60.000

NEA

Rasuwa

26

Upper Marsyangdi A

50.000

Sinohydro-Sagarmatha

Lamjung


🔥 Thermal Power Plants

S.N.
Plant
Capacity (KW)

1

Duhabi Multifuel

39,000

2

Hetauda Diesel

14,410

Total

53,410


📊 Total Installed Capacity (as of FY 2023/24)

Source
Capacity (KW)

Hydro (NEA - Grid)

578,624

Hydro (NEA - Isolated)

4,536

Hydro (NEA Total)

583,160

Hydro (NEA Subsidiary)

478,100

Hydro (IPPs)

1,477,013

Total Hydro (Nepal)

2,538,273

Thermal (NEA)

53,410

Solar (NEA)

25,000

Solar (IPPs)

61,940

Bagasse (IPPs)

6,000

Total Installed (Grid-Connected)

2,680,087

Total Installed (Overall)

2,684,623


🔨 Under Construction (NEA Subsidiary)

Project
Capacity (KW)

Tanahu

140,000

Rasuwagadi

111,000

Madya Bhotekoshi

102,000

Sanjen

42,500

Rahuganga

40,000

Upper Trisuli 3B

37,000

Upper Sanjen

14,800

Tamakoshi-V

860

Upper Modi 'A'

42,000

Total

615,367


🌞 Alternative Energy

  • Aim: Achieve SDGs, promote green economy, mitigate greenhouse gas impacts.

  • Installed capacity: 84.74 MW.

  • Provides electricity to 5.9% of the population.

  • 11.7% of population uses clean renewable energy for various purposes.


📊 Current Status in: Economic Survey FY 2023/24

  • Access to electricity: 97.7% (as of mid-March 2024).

  • Previous year (mid-July 2023): 95.0%.

Province-wise Access to Electricity (%):

Province
2022/23
2023/24*

Koshi

96.95

97.3

Madhesh

99.66

100.0

Bagmati

95.91

99.0

Gandaki

95.68

99.3

Lumbini

94.91

98.3

Karnali

43.87

68.5

Sudurpaschim

71.07

83.5

Nepal

94.0

97.7

*Till mid-March 2024


⚡ Electricity Generation in FY 2023/24 (First 8 Months)

Total Generated: 3,060.1 MW

Source
Capacity (MW)
% of National Total

Hydroelectricity

2,818.91

92.1%

Thermal Plant

53.4

1.7%

Alternative Energy

84.74

1.2%

Solar Plant

97.04

4.7%

Sugar Mill (by-product)

6.0

0.2%

Ownership-wise Grid Connection:

  • Nepal Electricity Authority: 660.45 MW

  • NEA Subsidiaries: 492.90 MW

  • Private Sector: 1,822.01 MW

Electricity Trade with India (FY 2023/24):

  • Import: Reduced by 928 GWh

  • Export: 1,495 GWh


🛣️ Transportation

  • Key for economic development, public service delivery, and social integration.

  • Includes road, air, rail, water, and ropeway.


🛣️ Major Highways of Nepal

Highway
Length (Km)
Start
End

East-West (Mahendra)

1,027.67

Kakarwitta, Jhapa

Gaddachauki, Kanchanpur

Tribhuvan

159.66

Tripureshwor, Kathmandu

Sirsiya, Parsa

Araniko

112.83

Maitighar, Kathmandu

Kodari, Sindhupalchowk

Siddhartha

146.94

Belhiya, Rupandehi

Prithvichowk, Kaski

Prithvi

173.43

Naubise, Dhading

Prithvichowk, Kaski

Karnali

233

Bange Simal, Surkhet

Jumla Khalanga, Jumla

B.P. Highway

158

Bardibas, Mahottari

Dhulikhel, Kavre

Pasang Lhamu

117.10

Kathmandu

Dhunche, Rasuwa

Sagarmatha

178.97

Kadmaha Chowk, Saptari

Diktel, Khotang

Rapti

168.68

Alimiya, Dang

Khaulapa, Rukum

Mahakali

415.15

Mohanapul, Kailali

Tinkerpass, Darchula

Mid-Hill (Puspalal)

1,879

Chiyo Bhanjyang, Pachthar

Jhulaghat, Baitadi

Narayanghat-Mugling

36.16

Narayangadh

Mugling, Chitwan


🏗️ Transportation (Continued)

✈️ Air Transport

  • As of FY 2023/24:

    • International airlines operating: 31

    • Domestic airlines: 22

    • Bilateral Air Service Agreements signed with: 41 countries

    • All-weather black-topped airports: 41 (33 in regular operation)


🌐 Bilateral Air Services Agreements

Nepal has signed Bilateral Air Services Agreements and MoUs with 42 countries since 1963.

S.N.
Country
Date/Amendments

1

Austria

October 20, 1997

2

Bahrain

December 29, 2008

3

Bangladesh

May 23, 2005

4

Bhutan

May 23, 2014

5

Brunei

April 02, 1997

6

China

July 07, 1998

7

Croatia

March 30, 2004

8

Egypt

November 29, 1997

9

Germany

July 26, 2000

10

France

July 07, 1998

11

Hong Kong

May 23, 2007

12

India

November 26, 1964

13

Israel

December 25, 2006

14

Italy

May 08, 1997

15

Japan

February 17, 1993

16

Jordan

October 06, 1999

17

Kuwait

January 23, 2006

18

Luxembourg

June 18, 1999

19

Macau

February 19, 1998

20

Malaysia

December 12, 2007

21

Maldives

October 10, 1996

22

Myanmar

April 21, 2006

23

New Zealand

October 22, 2015

24

Oman

December 02, 1997

25

Pakistan

October 22, 2015

26

Philippines

November 18, 2004

27

Qatar

September 01, 2009

28

Republic of Korea

September 21, 2004

29

Russia

December 05, 1989

30

Saudi Arabia

October 23, 2015

31

Singapore

February 02, 2010

32

Sri Lanka

January 23, 2009

33

Thailand

February 16, 2004

34

Netherlands

April 17, 1998

35

Turkey

September 24, 2010

36

UAE

October 19, 2015

37

United Kingdom

March 03, 1994

38

Vietnam

October 20, 2015

39

Cambodia

November 29, 2018

40

Australia

September 30, 2019

41

Rwanda

December 05, 2023

42

Switzerland

February 06, 2024

Source: Civil Aviation Authority of Nepal


🚂 Railway Transport

Current Status (FY 2023/24):

Description
Unit
FY 2021/22
FY 2022/23
2023/24*

Railway Construction

km

0.0

0.0

62.0

Track Bed Construction

km

3.5

6.5

63.0

Railway Bridge Construction

No.

24

1

4

*Till mid-March 2024 Source: Department of Railways, 2080


📡 Communication and Information Technology

The Constitution of Nepal guarantees:

  • Freedom of the press 🗞️

  • Freedom of speech and expression

  • Right to communication and information

SDG Goal: Substantially increase access to affordable internet for all.

Target by end of 16th Plan: Increase internet access from 65.9% to 80%.


📅 Major Milestones in Communication History

Year (B.S.)
Milestone/Event

1875

Beginning of Postal Service in Nepal

1908

Establishment of first telephone lines in Kathmandu

1970

Establishment of MOHAN AKASHWANI

2005

Nepal obtained membership of International Telecommunications Union

2016

Establishment of National News Agency

2016

Department of Telecommunications established

2032

Establishment of Nepal Telecommunications Corporation

2040

Establishment of digital Telephone Exchange

2042

Beginning of Transmission of Television (Nepal Television)

2052

Beginning of F.M. Radio in Nepal

2054

Telecommunications Authority established

2056

Launching of GSM Mobile services (Nepal Telecom)

2060

GSM Prepaid Service (Nepal Telecom)

Jan 01, 2021

Nepal Telecom's TV service launched


📰 Mass Communication and Journalism in Nepal

Print Media:

  • First newspaper in Nepali language: Gorkha Bharat (1943 BS) published in India by Motiram Bhatta

  • First Nepali magazine published in Nepal: Sudha Sagar

  • First daily newspaper in Nepal: Aawaj (Falgun 08, 2007)

  • First weekly newspaper: Gorkhapatra (Baishakh 24, 1958) – became daily from Falgun 07, 2017

Printing Press:

  • First printing press brought to Nepal by Jung Bahadur Rana in 1908 BS ("Gidde Press")

Radio Broadcasting:

  • First state-owned radio: Radio Nepal (established Chaitra 20, 2007)

Television:

  • First TV: Nepal Television (officially established 2041 BS)

  • First test transmission: Shrawan, 2042

Cinema:

  • First Nepali feature film: Satya Harishchandra (2008 BS, made in India)

  • First Nepali film made by Govt. of Nepal: Aama


📊 Current Status in: Economic Survey FY 2023/24

Policy Initiatives:

  • Cyber Security Policy, 2078

  • National Broadcasting (Eleventh Amendment) Rules, 2078

  • Radio Communication (License) (Fifth Amendment) Rules, 2078

  • Film (Production, Presentation and Distribution) (Seventh Amendment) Rules, 2078

  • Citizens App. (operation and management) Guidelines, 2078

Infrastructure Expansion (mid-July 2023):

  • FTTH (Fiber to the home) service expanded to 45 cities/urban areas in 73 districts

  • 4G/LTE service extended to 740 local levels in 77 districts


Indicators
Unit
FY 2021/22
FY 2022/23
FY 2023/24*

Density of Internet Subscriber

%

130.6

135.9

143.8

Increase in National access to Radio

%

91

92

93.0

Customers of Mobile Telephone

Lakh

420

347

355

Access to broadband in Local Level

No.

738

753

753

Expansion of optical fiber service

km

12,224*

12,338

14,053

Expansion of fixed broadband internet

%

32.2

40.3

47.7

*Up to mid-March 2024 Source: MoCTC, GoN, 2080


🎓 Education

  • Recognized as key to sustainable development and economic prosperity.

  • Constitution guarantees right to education as a fundamental right.

  • Free and compulsory education up to basic level.

  • Free education up to secondary level.

  • Free higher education for disabled and economically weaker citizens.

  • Right to education in mother language.

Policy: Make education scientific, technical, vocational, empirical, employment-oriented, and service-oriented.


📜 History of Education in Nepal

  • 1854: Jung Bahadur Rana opened Durbar School (for elites, opened to public in 1901).

  • Bir Shamsher introduced women's education.

  • 1951: Efforts to establish formal education system.

  • 1954: National Education Planning Commission founded.

  • 1971: New Education System implemented (Fourth Five-Year Plan).

  • Literacy Rate (Census 2078): 76.2% (Male: 83.6%, Female: 69.4%)

  • Highest literacy: Kathmandu (89.23%)

  • Lowest literacy: Rautahat (49.48%)


📅 Major Milestones in Education

Year (B.S.)
Event

1910

Durbar School established by Jung Bahadur Rana

1942

Durbar High School opened to public by Bir Shamsher

1975

Tri-Chandra College established

1990

Introduction of SLC Examination Board

2007

Ministry of Education established

2016

Tribhuvan University Established

2043

Nepal Sanskrit University established

2046

Establishment of HSEB

2073

National Examination Board (NEB) Established


🏛️ Universities in Nepal

  1. Tribhuvan University (TU) – 1959 AD

  2. Nepal Sanskrit University (NSU) – 1986 AD

  3. Kathmandu University (KU) – 1991 AD

  4. Purbanchal University (PU) – 1994 AD

  5. Pokhara University (PokU) – 1997 AD

  6. Lumbini Bouddha University (LBU) – 2005 AD

  7. Far-western University – 2010

  8. Mid-western University – 2010

  9. Agriculture and Forestry University – 2010

  10. Nepal Open University – 2016

  11. Rajarshi Janak University – 2017

Source: UGC


🏥 Health

  • Constitution guarantees right to free basic health services.

  • State aims for equitable access to quality health services.

Health Indicators (Recent):

  • Infant mortality rate: 32 per 1,000 live births

  • Neonatal mortality rate: 21

  • Under-5 mortality rate: 39

  • Maternal mortality rate: 239 per 100,000 live births

  • Total fertility rate: 2.3 per woman

  • Stunting in children under 5: 36%

  • Target by end of 16th Plan: Average lifespan to reach 73 years


📊 Current Status of Social Sectors (FY 2023/24)

Sector
Contribution to GDP (FY 2023/24)
Growth Rate (GVA)

Education

8.5%

2.7%

Health

1.87%

6.52%

(Previous year: Education 8.3%, Health 1.92%)


🌍 Foreign Employment and Migration

Three Migration Patterns:

  1. Domestic migration

  2. Migration to India

  3. Migration to third countries (other than India)

India: Traditional destination due to proximity, cultural links, open border (1950 Treaty of Peace and Friendship).


📊 Status of Labour Migration (Nepal Labour Migration Report, 2022)

Skill Level of Migrants:

  • Professional: 0.06%

  • Highly skilled: 0.01%

  • Skilled: 38.3%

  • Semi-skilled: 7.4%

  • Unskilled: 54.2%

Total workers with labor permit (mid-March 2024): 5,969,266

  • Male: 93.8%

  • Female: 6.2%

New labor permits (FY 2023/24): 285,000

Countries Opened for Foreign Employment:

  • Institutional basis: 111 countries (latest: Serbia)

  • Personal initiative: 178 countries


🎯 Major Destinations for Foreign Employment

  1. Malaysia

  2. Qatar

  3. Saudi Arabia

  4. United Arab Emirates (UAE)

  5. Kuwait

Emerging Destinations: Cyprus, Romania, Maldives, Malta, Jordan, Turkey

Age Limit for Women Domestic Workers (Guidelines 2074): At least 24 years for Gulf countries.


📈 Country-wise Foreign Employment Status (mid-March 2024)

Country
Female
Male
Total
% of Total

Malaysia

40,348

1,513,476

1,553,824

26.03%

Qatar

36,599

1,455,658

1,492,257

24.99%

Saudi Arabia

9,506

1,274,613

1,284,119

21.51%

UAE

114,810

816,941

931,751

15.60%

Kuwait

64,693

179,475

244,168

4.09%

Bahrain

6,583

70,331

76,914

1.2%

Oman

8,247

42,220

50,467

0.84%

Japan

4,680

29,985

34,666

0.58%

Others

83,166

228,198

311,364

5.21%

Total

368,067

5,601,169

5,969,266

100.00%

Source: Economic Survey FY 2023/24


🤝 Bilateral Labour Agreements

Countries with Bilateral Labour Agreements:

  1. Qatar

  2. UAE

  3. South Korea

  4. Bahrain

  5. Japan

  6. Jordan

  7. Malaysia

  8. Mauritius

  9. UK

  10. Romania

  11. Germany

Agreement Models:

  1. G2G (Government-to-Government) – Israel, Japan, South Korea

  2. PRA (Private Recruitment Agencies) – Bahrain, Jordan, Malaysia, Mauritius, Qatar, UAE


📅 Agreement Renewal Dates

S.N.
Country
Renewal Date

1

Qatar

March 21, 2005

2

South Korea

July 23, 2007

3

Bahrain

April 29, 2008

4

Japan

March 25, 2019

5

Jordan

October 13, 2017

6

Malaysia

October 29, 2018

7

Mauritius

June 11, 2019

8

UAE

June 14, 2019

9

Israel

September 30, 2020

10

UK

August 22, 2022

11

Romania

October 06, 2023

12

Germany

October 10, 2023

Source: Nepal Labour Migration Report, 2023


🏆 Projects of National Pride (National Pride Projects)

Total Projects: 24 Started: FY 2011/12 Focus: Large-scale infrastructure, cultural/environmental protection, socio-economic upliftment.


📋 List of National Pride Projects

S.N.
Project
Period (B.S.)
Implemented Area

1

Sikta Irrigation Project

Start: 2061/62, End: 2089/90

Banke district, Lumbini Province

2

Rani Jamara Kulariya Irrigation Project

Start: 2067/68, End: 2080/81

Kailali district, Sudurpashchim Province (4.71 MW hydro)

3

Bheri Babai Diversion Multipurpose Project

Start: 2068/69, End: 2079/80

Surkhet, Banke, Bardiya (46.8 MW hydro)

4

Mahakali Irrigation Project (III phase)

Start: 2063/64, End: 2087/88

Kailali, Kanchanpur, Sudurpashchim Province

5

Sunkoshi Marin Diversion Multipurpose Project

Start: 2073/74, End: 2080/81

Sindhuli, Ramechap, Bara, Rautahat, Sarlahi, Mahottari, Dhanusa (31.07 MW hydro)

6

Babai Irrigation Project

Start: 2045/46, End: 2082/83

Bardiya district, Lumbini Province

7

Midhill (Puspalal) Highway Project

Start: 2064/65, End: 2079/80

26 districts, 1879 km (Chiyo Bhanjyang, Panchthar to Jhulaghat, Baitadi)

8

Postal (Hulaki) Highway

Start: 2066/67

21 districts of Terai Madhesh

9

North-South Highway of Kaligandaki Corridor

Start: 2066/67, End: 2079/80

Mustang, Myagdi, Parbat, Baglung, Gulmi, Palpa, Nawalparasi East

10

Koshi Corridor

Start: 2065/66, End: 2087/88

Morang, Sunsari, Dhankuta, Terhathum, Sankhuwasabha

11

Karnali Corridor

Start: 2065/66, End: 2084/85

Banke, Bardiya, Surkhet, Dailekh, Kalikot, Jumla, Mugu, Humla

12

Budhigandaki Reservoir Hydropower Project

Start: 2069/70, End: 2083/84

Dhading, Gorkha

13

President Chure-Terai Madhesh Conservation Area Program

Start: 2071/72, End: 2093/94

37 districts across 7 provinces

14

Melamchi Drinking Water Project

Start: 2055/56, End: 2080/81

Kathmandu, Lalitpur, Bhaktapur, Sindhupalchok, Kavrepalanchok

15

Kathmandu-Terai Expressway

Start: 2073/74, End: 2080/81

Kathmandu, Lalitpur, Makawanpur, Bara (70.977 km)

16

Lumbini Area Development Project

Start: 2069/70, End: 2080/81

Kapilvastu, Rupandehi, West Nawalparasi

17

Pashupati Area Development Project

Start: 2070/71, End: 2079/80

Kathmandu

18

Nijgadh International Airport, Bara

Start: 2071/72, End: 2085/86

Bara, Madhesh Province

19

Pokhara Regional International Airport

Start: 2074/75, End: 2079/80

Kaski, Gandaki Province

20

Gautam Buddha Regional International Airport

Start: 2072/73, End: 2078/79

Rupandehi, Lumbini Province

21

West Seti Hydropower Project

Start: 2066/67

Doti, Dadeldhura, Baitadi, Achham, Bajhang

22

Upper Tamakoshi Hydropower Project

Start: 2067/68, End: 2078/79

Dolakha, Bagmati Province

23

Electricity Transmission Project (MCA-Nepal)

Start: 2067/68, End: 2084/85

12 districts across Bagmati, Gandaki, Lumbini

24

East-West Railway

Start: 2066/67, End: 2086/87

21 districts across Koshi, Madhesh, Gandaki, Lumbini, Sudurpashchim

Source: National Planning Commission, Economic Survey FY 2023/24