KATHMANDU, Jan 10: A new national poverty assessment has laid bare Nepal’s stark and uneven economic realities, revealing that more than one in five Nepalis—20.27 percent of the population– live below the poverty line. The findings released on Friday by the National Statistics Office (NSO) show Sudurpaschim Province as the poorest in the country, while Gandaki Province fares the best.
The report, based on the Nepal Living Standards Survey conducted using a methodology developed by the World Bank, goes beyond national averages to map poverty down to districts and individual local units.
Making public the Small Area Estimation of Poverty, Deputy Chief Statistician Dhundhi Raj Lamichhane said the exercise has also led to the adoption of a new national poverty line, reflecting changes in living costs and consumption patterns over the past decade.
Under the revised benchmark, anyone with an annual per capita expenditure of less than Rs 72,908 is considered poor. This marks a sharp revision from the previous poverty line of Rs 19,261, set in Fiscal Year (FY) 2009/10. Even with the updated threshold, the data show that more than a fifth of the population continues to struggle to meet basic needs.
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The report highlights a persistent urban–rural divide. While 18.34 percent of people in urban areas live below the poverty line, the figure climbs to 24.66 percent in rural Nepal, underscoring the challenges faced by communities outside cities. Provincially, Sudurpaschim records the highest poverty rate at 34.16 percent, compared to just 11.88 percent in Gandaki, the least poor province.
By drilling down to the local level, the data reveal striking contrasts. Among 753 local units across 77 districts, the lowest poverty rate was found in Gharpajhong Rural Municipality of Mustang district, where only 1.8 percent of residents are classified as poor. Of the municipality’s population of 3,712, just 44 people fall below the poverty line.
At the other end of the spectrum lies Junichande Rural Municipality in Jajarkot district, Karnali Province, where poverty is nearly universal. There, 77.89 percent of residents—18,515 out of 23,771 people—live below the poverty line, making it the poorest local unit in the country.
Overall, 309 local units have poverty rates below the national average, while 444 local units exceed it. Across the country, local poverty rates range from as low as 1.18 percent to as high as 77.89 percent, illustrating the depth of inequality between regions.
In absolute terms, Kathmandu Metropolitan City has the largest number of people living below the poverty line. According to Lamichhane, 59,218 residents of the capital fall into this category, even though the city’s overall poverty rate remains relatively low at 6.87 percent due to its large population.
District-wise figures show Achham in Sudurpaschim Province with the highest poverty rate at 49.58 percent, while Kaski in Gandaki Province records the lowest at 5.63 percent. In total, 34 districts have poverty rates below the national average, while 43 districts remain above the 20.27 percent mark.
Speaking at the release programme, Finance Minister Rameshwor Khanal said Nepal’s transition to federalism has increased the demand for granular, local-level data to guide policymaking at all three tiers of government. He said the new poverty data would provide a stronger foundation for future economic and social policies.
“Poverty alleviation remains one of Nepal’s most pressing social challenges and a priority for the federal, provincial and local governments,” Khanal said, stressing that detailed local-level data are essential for effective intervention.
He added that the statistics would play a crucial role in the implementation, monitoring and evaluation of poverty reduction programmes. “Until now, many policies were designed on the basis of broad estimates,” he said. “With this evidence-based approach, public investments can be better targeted, ensuring more efficient and effective use of limited resources.”
At the same event, Minister Khanal also unveiled the Small Area Estimation of Poverty and the National Transfer Accounts prepared by the NSO, marking a significant step toward data-driven policymaking in Nepal.
