Country Profile: Nepal

Nepal, located in Southern Asia between China and India, encompasses diverse geography that includes the rugged Himalayas and fertile plains. With a population estimated at 31.3 million in 2025, the country boasts a rich tapestry of ethnicities and cultures. Nepal's economy is characterized as low-income, heavily reliant on agriculture, and has been recovering from the impacts of the COVID-19 pandemic. The governance system is a federal parliamentary republic that has seen a complex political evolution, culminating in a multiparty democracy.

Geography

Nepal is a landlocked country bordered by China to the north and India to the south, with an area of 147,181 square kilometers. Its terrain varies significantly, featuring the flat river plains of the Ganges in the south and the towering Himalayas in the north, including Mount Everest, the highest point on earth. The climate ranges from cool summers in the north to subtropical temperatures in the south, facing natural hazards such as landslides and flooding during monsoon seasons.

8 of the 10 highest peaks in the world are found in Nepal.
The highest point, Mount Everest, reaches 8,849 m above sea level.
43.5% of land is covered by forests (2023).
Total land boundaries extend to 3,159 km.
26.1% of land is used for agriculture (2023).

People and Society

Nepal's population is projected to reach 31,334,402 by 2025, with a nearly equal male-to-female ratio. The society is diverse, consisting of over 141 ethnic groups, with Chhettris and Brahman-Hill being the largest. The official language is Nepali, but many people also speak multiple languages, including Maithili and Bhojpuri. The country is predominantly Hindu, with a significant Buddhist minority.

21.9% of the population lives in urban areas (2023).
The median age is 28.1 years (2025).
The literacy rate stands at 68.7% (2019).
16.66 births per 1,000 population are projected for 2025.
Life expectancy at birth is estimated at 73 years (2024).

Economy

Nepal has a low-income economy significantly influenced by agriculture, which accounts for 21.9% of the GDP in 2024. The country is experiencing economic challenges, including widening current account deficits and the legacy of environmental fragility due to earthquakes. However, post-conflict fiscal federalism is creating a more stable economic environment, aided by growing trade with China.

$149.643 billion is the estimated GDP (PPP) for 2024.
10.8% of the population is unemployed (2024).
20.3% of the population lives below the national poverty line (2022).
Remittances represent 33.1% of GDP in 2024.
Inflation rate stood at 7.1% in 2023.

Government

Nepal operates as a federal parliamentary republic, with a complex history of political evolution. The capital, Kathmandu, serves as the political and cultural hub. The country is divided into seven provinces. The current president is Ram Chandra Poudel, and Sushila Karki is the head of government as of March 2023. The legal framework includes English common law principles and the latest constitution was promulgated in 2015.

18 years is the minimum voting age.
275 members comprise the House of Representatives.
The most recent parliamentary election was held on November 20, 2022.
37.3% of the National Assembly members are women.

Military and Security

The Nepalese Armed Forces consist of the Nepali Army and police forces tasked with maintaining internal security. Military expenditures accounted for 1% of GDP in 2024, with approximately 95,000 active personnel. Nepal contributes to various UN peacekeeping missions globally.

1240 troops are deployed in the Central African Republic (2025).
Military service is voluntary, starting at 18 years of age.
The country has a history of military participation in international peacekeeping.

Energy

Nepal's electrification rate is relatively high, at 91.3% (2022), supported mainly by hydroelectric power, which accounts for 99% of its energy generation capacity. The country imports and exports electricity to manage consumption.

Total electricity consumption reached 9.806 billion kWh in 2023.
Installed generating capacity is 2.853 million kW (2023).
1.9 million metric tons of refined petroleum were consumed daily in 2023.

Environment

The country faces significant environmental challenges, including deforestation and soil erosion, exacerbated by a lack of sustainable alternatives to traditional fuel sources. Nepal is a participant in several international environmental agreements aimed at addressing climate change and biodiversity conservation.

4.6% of municipal solid waste was recycled in 2022.
The total annual CO2 emissions were approximately 11.357 million metric tonnes (2023).

Transportation

Nepal has a limited but improving transportation infrastructure, counted among its 51 airports and a small railway segment. The mountainous terrain poses challenges for road construction and maintenance.

59 km of railways were reported as of 2018.
There are 14 designated heliports in the country.

Communications

Telecommunication in Nepal is rapidly evolving, with a high penetration of mobile telephony and internet users.

Approximately 29.6 million mobile cellular subscriptions exist as of 2024.
56% of the population used the internet in 2023.
There are 1.44 million fixed broadband subscriptions reported in 2022.

Key Metrics

Metric	Value	Note
Population	31,334,402 (2025 est.)
Area	147,181 sq km
GDP (PPP)	$149.643 billion (2024 est.)
Unemployment Rate	10.8% (2024 est.)
Birth Rate	16.66 births/1,000 (2025 est.)
Life Expectancy	73 years (2024 est.)
Energy Consumption per Capita	6.604 million Btu/person (2023 est.)
Electrification Rate	91.3% (2022 est.)
Literacy Rate	68.7% (2019 est.)
Agricultural Land	26.1% (2023 est.)