The latest poverty report makes it clear how far Nepal still has to go in tackling this grim issue, with one in every five individuals living below the poverty line—20.27 percent, to be precise. The new poverty line has been set at Rs 72,908 per capita per year, a substantial increase from the previous benchmark. Yet despite this revision, millions of Nepalis continue to struggle to make ends meet. Among the provinces, Sudurpaschim is the poorest, with nearly one-third of its population living below the poverty line, while Gandaki has the lowest poverty rate, at around 12 percent. Rural areas face the toughest conditions, with almost a quarter of the population living in poverty, compared to 18.34 percent in urban areas. District-level data reveal even starker disparities. Achham in Sudurpaschim has nearly half of its population living below the poverty line, while Kaski district in Gandaki reports a rate of just over 5 percent. At the local level, the contrast is even more striking, ranging from less than 2 percent in parts of Mustang to as high as 78 percent in Junichande Rural Municipality of Jajarkot.
Poverty: A Multidimensional Problem, Nepalese Context
Poverty in Nepal is the result of both structural and geographical challenges. Interior provinces such as Sudurpaschim face difficult terrain and limited access to markets, with most residents dependent on subsistence agriculture. The shift to a federal system has highlighted the need for detailed, subnational data, yet the implementation of development programmes continues to face hurdles such as weak administrative capacity and insufficient funding. Social factors, including low literacy rates and gender inequality, further compound the problem. While labour migration offers temporary relief for some households, it is not a sustainable solution.To bring about meaningful change, policies must focus on regions facing the greatest hardship. In Sudurpaschim, for instance, investments in roads, irrigation, quality schools and health facilities could significantly improve livelihoods. Local governments require stronger institutional support to implement programmes effectively, while higher authorities must ensure that public funds reach the intended beneficiaries. Targeted cash transfers, support for small farmers, and skills training programmes can help more families escape poverty.
Expanding access to microcredit through banks and cooperatives is another critical step. Small loans can enable households to start small businesses and diversify their sources of income, reducing vulnerability. Ultimately, reducing poverty in Nepal will require patience, coordination across all levels of government, and evidence-based policymaking. By using data to direct resources where they are needed most, and by balancing immediate relief with long-term investments in infrastructure, education and social protection—particularly in the hardest-hit provinces—the country can gradually narrow regional disparities and build a more inclusive economy.
