More than one-fifth of Nepal's population is living below the poverty line, according to a new report released by the National Statistics Office (NSO), highlighting deep economic disparities across provinces, districts, and local governments. The Small Area Estimation of Poverty, 2023 report estimates that 20.27 percent of Nepalis are poor, meaning they cannot meet the minimum standard of living defined by the national poverty threshold.
While the overall figure shows gradual improvement compared to past decades, the study reveals stark inequalities at the local level. The NSO used a Small Area Estimation (SAE) method, combining data from the Nepal Living Standards Survey IV and the 2021 National Census. This approach allows poverty to be measured at district and municipal levels, offering a clearer picture of where assistance is most needed. Under the revised standard, individuals spending less than Rs 72,908 per year are considered poor, meaning those who can spend less than Rs 200 per day are considered poor.
According to the report, poverty remains significantly higher in rural areas, where nearly one in four people lives below the poverty line. In contrast, urban areas record a lower poverty rate, although large cities still account for a high number of poor residents due to their dense populations. The report also notes that urban poverty is often hidden behind rising living costs, informal employment, and migration pressures, particularly in rapidly growing cities like Kathmandu. Among the seven provinces, Sudurpaschim emerges as the poorest, with more than 34 percent of its population living in poverty. On the other end, Gandaki Province records the lowest poverty rate at under 12 percent.
Officials say geography, access to services, infrastructure, and employment opportunities play a major role in shaping these outcomes. One of the most striking findings of the report is the vast variation among local governments. Poverty rates range from just over 1 percent in some municipalities to nearly 78 percent in others. Out of Nepal's 753 local units, some 444 have poverty levels higher than the national average, underlining the need for targeted development programs rather than one-size-fits-all policies.
Despite having a relatively low poverty rate, Kathmandu Metropolitan City has the largest number of poor people in absolute terms, reflecting the challenges faced by low-income migrants and informal workers in the capital. Experts say the findings provide crucial guidance for federal, provincial, and local governments as they design poverty reduction programs.
"This data allows policymakers to focus resources on the most vulnerable communities," the NSO said, adding that localized evidence is essential for effective social protection, employment generation, and service delivery. As Nepal continues its journey toward economic growth, the report serves as a reminder that progress remains uneven, and that lifting the poorest communities will require focused, location-specific action.
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