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Country Profile: Nepal

Nepal, a landlocked country situated in Southern Asia between China and India, is renowned for its diverse geography, which includes the towering Himalayas, home to Mount Everest. With a population of approximately 31.3 million, the nation exhibits a rich tapestry of ethnic groups and languages, predominantly Nepali. The economy is classified as low-income and heavily relies on agriculture, tourism, and remittances, while its governance structure is a federal parliamentary republic, having transitioned from a constitutional monarchy in 2008.

Geography

Nepal's geographical location is strategic, bordered by China to the north and India to the south. The country is characterized by diverse terrain, ranging from the flat river plains of the Tarai region to the rugged Himalayas in the north. The climate varies significantly, offering cool summers and severe winters in the north, while the south experiences subtropical summers and mild winters.

  • Total Area: 147,181 sq km
  • Land Borders: 3,159 km (China: 1,389 km, India: 1,770 km)
  • Highest Point: Mount Everest at 8,849 m
  • Major Resources: Quartz, water, timber, and hydropower
  • Natural Hazards: Flooding, landslides, and droughts

People and Society

With an estimated population of 31,334,402 by 2025, Nepal's demographic profile includes a diverse array of ethnic groups, with Chhettri (16.5%) and Brahman-Hill (11.3%) being the most prominent. The official language is Nepali, spoken by nearly half the population, while the major religions are Hinduism and Buddhism. The country is experiencing urbanization, with only 21.9% of the population living in urban areas as of 2023.

  • Population Growth Rate: 0.66% (2025 est.)
  • Birth Rate: 16.66 births/1,000 population (2025 est.)
  • Life Expectancy: 73 years (2024 est.)
  • Literacy Rate: 68.7% (2019 est.)

Economy

Nepal's economy is classified as low-income, significantly impacted by its post-conflict era and environmental fragility. The real GDP in purchasing power parity is projected to reach $149.643 billion in 2024, reflecting steady growth, despite challenges from recent events like the COVID-19 pandemic. Agriculture remains vital, representing 21.9% of the GDP, while remittances play a crucial role, contributing nearly 33.1% of GDP.

  • GDP per Capita: $5,000 (2024 est.)
  • Unemployment Rate: 10.8% (2024 est.)
  • Inflation Rate: 7.1% (2023 est.)
  • Exports: $3.744 billion (2024 est.)
  • Poverty Rate: 20.3% (2022 est.)

Government

Nepal operates as a federal parliamentary republic, established following the abolition of the monarchy in 2008. The Constitution, effective from September 20, 2015, outlines the country's governance framework. The capital, Kathmandu, serves as a central hub for political activity. The government structure is marked by a bicameral legislature and a president as the chief of state.

  • Current President: Ram Chandra Poudel (since March 2023)
  • Legislative Structure: Bicameral Federal Parliament
  • Administrative Divisions: 7 provinces

Military and Security

The Nepalese Armed Forces, which includes the Nepali Army and the Nepal Police, play a vital role in the country's defense and security. Approximately 95,000 military personnel are active as of 2025. The nation participates in several UN peacekeeping missions, reflecting its commitment to international security.

  • Military Expenditures: 1% of GDP (2024 est.)
  • Active Military Personnel: 95,000 (2025)

Energy

Nepal's energy landscape is dominated by hydropower, which accounts for 99% of its installed electricity generation capacity. Access to electricity stands at 91.3% of the total population, with significant improvements in urban and rural electrification.

  • Total Installed Capacity: 2.853 million kW (2023 est.)
  • Electricity Consumption: 9.806 billion kWh (2023 est.)

Environment

Environmental issues in Nepal include deforestation, soil erosion, and water contamination. The country is a party to multiple international environmental agreements aimed at addressing climate change and biodiversity. The landscape’s inherent fragility necessitates focused conservation efforts.

  • Forest Cover: 43.5% (2023 est.)
  • Total Renewable Water Resources: 210.2 billion cubic meters (2022 est.)

Transportation

Nepal boasts an array of transportation facilities, including 51 airports and 14 heliports. The road and rail infrastructure development is ongoing, aiming to enhance connectivity throughout the mountainous terrain.

  • Railways: 59 km (2018)
  • Civil Aircraft Registration Code: 9N

Communications

The telecommunications sector in Nepal includes a robust mobile network, with approximately 29.6 million mobile cellular subscriptions as of 2024. Internet penetration is significant, with 56% of the population using the internet.

  • Fixed-Line Telephones: 726,000 (2021 est.)
  • Broadband Subscriptions: 1.44 million (2022 est.)

Key Metrics

MetricValueNote
Population31,334,402 (2025 est.)
Area147,181 sq km
GDP (PPP)$149.643 billion (2024 est.)
Electricity Access91.3% (2022 est.)
Birth Rate16.66 births/1,000(2025 est.)
Unemployment Rate10.8% (2024 est.)
Life Expectancy73 years (2024 est.)
Literacy Rate68.7% (2019 est.)
Forest Cover43.5% (2023 est.)
Urban Population21.9% (2023)