Country Profile: Nepal

Nepal, a landlocked nation in Southern Asia, lies between China and India and boasts a diverse geography that includes the world's highest peaks, including Mount Everest. With a population of approximately 31.3 million people, it is characterized by a mix of ethnic groups and languages, predominantly Nepali. The economy is primarily low-income and reliant on agriculture, remittances, and tourism, while its governance has transitioned through various political phases to a federal parliamentary republic.

Geography

Located in Southern Asia, Nepal is bordered by China to the north and India to the south, featuring a picturesque terrain that ranges from the flat plains of the Tarai region to the rugged Himalayas. The country is entirely landlocked and experiences a varied climate that shifts from cool summers and severe winters in the north to subtropical summers in the south. Natural resources include significant hydropower potential, timber, and minerals, making it strategically important in South Asia.

147,181 sq km: Total area
3,159 km: Total land boundaries with India and China
8,849 m: Height of Mount Everest, the highest peak in the world

People and Society

With a population estimated at about 31.3 million in 2025, Nepal is rich in cultural diversity, home to 141 ethnic groups, and multilingual, with Nepali as the official language. The dominant religions are Hinduism and Buddhism, contributing to a rich tapestry of cultural traditions and practices. The median age is 28.1 years, reflecting a youthful demographic that is rapidly urbanizing, with nearly 21.9% of the population living in urban areas.

81.2%: Percentage of Hindus in the population
68.7%: Literacy rate as of 2019
25.8%: Population aged 0-14 years

Economy

Nepal's economy is classified as a low-income economy heavily reliant on agriculture, tourism, and remittances, with a GDP at purchasing power parity estimated at $149.6 billion in 2024. The government is currently working on fiscal federalism to improve stability post-conflict, while trade and tourism still face challenges due to the impacts of COVID-19. Current account deficits are a concern, alongside an increasing dependency on remittances.

21.9%: Contribution to GDP from agriculture (2024)
10.8%: Unemployment rate estimated for 2024
33.1%: GDP from remittances (2024)

Government

Nepal operates as a federal parliamentary republic, having undergone significant political changes in recent decades, including the abolition of the monarchy in 2008. The constitution, effective since 2015, establishes a structure for governance that includes a President and a Prime Minister, with elections scheduled for March 2026. The political landscape is characterized by multiple parties, including the Nepali Congress and various communist factions.

18 years: Universal suffrage age
275: Seats in the House of Representatives
4 (2024 est.): Total World Heritage Sites recognized

Military and Security

The Nepalese Armed Forces encompass approximately 95,000 active personnel, with a military expenditure of 1% of GDP. The military is primarily responsible for national defense, disaster relief, and contributing to UN peacekeeping missions. Nepal has a long history of military cooperation with other nations, particularly in peacekeeping operations.

1,750: Nepali personnel deployed to South Sudan (2025)
1240: Personnel in the Central African Republic under UN operations

Energy

Nepal is heavily reliant on hydropower, which constitutes 99% of its total installed electricity generation capacity. The electrification rate stands at 91.3%, with improving access particularly in urban areas. The government continues to invest in renewable energy sources, but energy imports still play a crucial role in meeting demand.

2.853 million kW: Total installed electricity generating capacity (2023)
9.806 billion kWh: Total electricity consumption (2023)

Environment

Nepal faces numerous environmental challenges, including deforestation, soil erosion, and contamination from agricultural runoff. The government is party to numerous international environmental agreements aimed at protecting biodiversity and combating climate change, though the country's fragile ecology remains at risk due to human activities.

43.5%: Forest cover in 2023
4.6%: Percentage of municipal solid waste recycled (2022)

Transportation

Nepal's transportation system includes 51 airports and limited rail infrastructure, with a total railway length of only 59 km. The country's mountainous geography presents challenges for developing extensive road networks, and air travel is a key mode of transportation for both domestic and international travelers.

51: Total airports planned for 2025
14: Heliports in Nepal (2025)

Communications

Telecommunications in Nepal have grown rapidly, with 29.6 million mobile cellular subscriptions, reflecting widespread mobile connectivity. The internet penetration stands at around 56% of the population, enabling better access to information and services.

726,000: Fixed telephone line subscriptions (2021)
1.44 million: Broadband subscriptions (2022)

Key Metrics

Metric	Value	Note
Population	31,334,402 (2025 est.)	Total estimate for 2025
Area	147,181 sq km	Total area of the country
GDP (PPP)	$149.643 billion (2024 est.)	Purchasing power parity GDP
Unemployment Rate	10.8% (2024 est.)	Percentage of labor force seeking employment
Energy Consumption	6.604 million Btu/person (2023 est.)	Per capita energy consumption
Birth Rate	16.66 births/1,000 population (2025 est.)	Birth rate estimate for 2025
Life Expectancy	73 years (2024 est.)	Average life expectancy at birth
Literacy Rate	68.7% (2019 est.)	Total literacy rate
Urban Population Percentage	21.9% (2023)	Percentage living in urban areas
Forest Coverage	43.5% (2023 est.)	Percentage of land covered by forests