Imagine a farmer named Gopal Malhari Bhise. One day, while watching another man struggling to carry sacks of flour on his bicycle, he wondered: what if the bicycle could be used for more than just transportation? Soon, he dismantled the rear wheel of his bicycle and, using scrap materials, built a unique weeding device that allowed him to cultivate the land without a tractor or bullocks. This simple yet brilliant story is the perfect embodiment of the concept known as "jugaad".

Term"jugaad", which comes from Hindi, describes not just an improvised solution created from meager resources, but an entire philosophy. It is the art of doing more with less, finding opportunities in difficulties and turning limitations into advantages. It was originally a survival tactic on the streets of India, where washing machines were turned into yogurt makers. Today the principles Jugaad— flexibility, cost-effectiveness and inclusiveness — are being studied and implemented by global corporations such as Philips, Google and GE, seeing them as the key to innovation in the face of global economic instability.

Nowhere is this spirit more evident than in Nepal. A quiet revolution is unfolding in a country struggling with deep socioeconomic and geographic challenges. Faced with systemic inefficiencies and gaps in public services, ordinary citizens and grassroots innovators are applying the principles ofJugaad to create solutions that are often more effective, sustainable, and locally tailored than large-scale government programs. This report explores how this bottom-up ingenuity is not only solving everyday problems in energy, agriculture, waste management, and education, but also creating unique and viable business models from scratch.

Imagine two scenes unfolding simultaneously. The first is on the slopes of Annapurna, where an experienced Sherpa guide, drawing on knowledge passed down through generations, leads a group of trekkers along a tried-and-true route, reading the weather from the wind and clouds. The second is in a bustling office in Kathmandu, where a young data scientist, a local university graduate, uses predictive analytics and machine learning models to optimize that same trekking route, calculating avalanche risks and offering clients personalized plans based on their fitness.

This contrast is not a fantasy, but a vivid illustration of the reality Nepal is on the cusp of. Artificial intelligence (AI) is no longer a distant concept from Silicon Valley, but a powerful force capable of fundamentally reshaping both traditional and cutting-edge sectors of the Nepalese economy.

Nepal is at a unique point in its development, having recently graduated from the category of least developed countries (LDCs) to the category of lower middle income countries, the state faces a double challenge. On the one hand, it needs to address the classic development problems of fighting poverty, developing infrastructure, and strengthening institutions. On the other hand, the country finds itself at the epicenter of a global technological revolution that is not waiting for old problems to be solved. With a GDP of about $40.91 billion in 2023, Nepal's economy is small by global standards, making it both more vulnerable to external shocks and potentially more flexible for rapid transformation.

In a small village in the Himalayan foothills, a family gathers around a smartphone. On the screen are the faces of their son and brother, who works on a construction site in Malaysia. Moments later, another remittance hits their bank account – a lifeline that puts food on the table, pays for school, and maintains a decent standard of living. The scene, repeated in thousands of Nepalese homes, captures the essence of the country’s central economic paradox. Nepal has achieved remarkable success in virtually eradicating extreme poverty – an achievement made possible in large part by money sent home from abroad.

But behind these impressive statistics lies a disturbing reality. This success has been achieved without transformative domestic growth, significant investment, or the creation of quality jobs. For nearly three decades, the country's economy has grown at an average rate of just 4.2% a year, lagging behind most of its South Asian neighbors. Dependence on remittances, which account for about 25% of GDP3, has created a "Dutch disease"-like effect: it has undermined the competitiveness of domestic exports and perpetuated a cycle of migration in which the country exports its most valuable asset - its youth.

Now, with remittance growth expected to slow and the limitations of the current model becoming increasingly apparent, the big question arises: Where will Nepal's next, more sustainable economic engine come from?

The answer lies not in one silver bullet, but in a strategic and synergistic pivot to a portfolio of undervalued but high-potential industries. Nepal’s future prosperity depends on its ability to leverage its unique strengths—rich culture, young and dynamic workforce, and unique geography—to develop four key sectors: creative ("orange") economy, high-tech agriculture, a rapidly developing sector digital services and highly profitable health tourism It is these areas that are capable of building a sustainable, inclusive and modern economy.

In the bustling alleyways of Kathmandu, where ancient temples cast shadows over buzzing IT hubs and trendy youth-run cafes, a quiet but fateful drama is unfolding. Here lives a generation caught between a past marred by political upheaval and economic stagnation and a future filled with digital opportunity. They are Nepal’s Generation Z, born between the mid-1990s and early 2010s.

Their importance cannot be overestimated. Nepal has what is called a “youth bulge”: 52% of the country’s population are young people aged 7 to 24. Their collective choices will determine the nation’s trajectory for decades to come, making them perhaps the most important variable in Nepal’s future.

The central question facing the country is simple, but its implications are enormous: Will these young people be forced to migrate abroad, becoming a “lost” generation of talent? Or will they leverage global connectivity to become the “architects” of a new, digital Nepal without leaving their homeland? The government has ambitious goals, such as “Good Governance, Social Justice, and Prosperity,” laid out in the 16th National Plan. However, these aspirations collide with the harsh reality of chronic political instability and deep structural economic problems that shape this generation's worldviews and life paths.

Nepal’s economy presents a profound paradox. On the one hand, the country has made impressive strides in reducing poverty, virtually eliminating extreme poverty in recent decades – an achievement aided by a huge influx of remittances from millions of citizens working abroad.1On the other hand, Nepal remains one of Asia's slowest growing economies, stuck in a low-growth trap, unable to create enough quality jobs for its young and growing population. At the heart of this paradox lies the vast, multifaceted and largely unaccounted for “shadow” or informal economy.

This investigation by Alpha Business Media delves into this hidden sector to quantify its scale and analyse its contradictory impact on Nepal’s gross domestic product (GDP), employment and social stability. Our findings show that the informal economy is not just a side effect, but a dominant feature of Nepal’s economic landscape, serving as both a lifeline and an anchor.

At the heart of Asia, sandwiched between the world’s highest peaks, lies Nepal, a country whose geography has shaped its destiny. It is more than just a small landlocked state; it is a key piece on the great Eurasian chessboard, a strategic crossroads where the interests of rising giants collide. For centuries, Nepal’s rulers have described their situation as “a yam between two boulders” – a fragile existence between India to the south and China to the north. Today, these “boulders” have become tectonic plates of global politics, and a third powerful player, the United States, has been added to their rivalry, turning the region into an arena for a new “Great Game.”

Nepal's official foreign policy is based on the principles of non-alignment, enshrined in the country's constitution and historically rooted in the Pancha Shila principles adopted at the Bandung Conference. This position is not so much an ideological choice as a strategic necessity dictated by geography. However, in the context of intensifying global competition, maintaining neutrality is becoming increasingly difficult. The shift from a unipolar to a multipolar world has only increased Nepal’s geostrategic importance, attracting the attention of not only its immediate neighbors but also the United States and the West in general.

The central thesis of this analysis is that Nepal’s fate is determined not so much by its own foreign policy decisions, but by the complex interplay between the strategic ambitions of external powers and Nepal’s own deep domestic vulnerabilities. Chronic political instability, a fragile economy, and acute climate threats create cracks in the state’s foundations that external actors are adept at exploiting to advance their interests. The policy of “non-alignment” thus becomes a desperate balancing act in which every major international project – be it China’s Belt and Road Initiative (BRI) or the US’s Millennium Challenge Corporation (MCC) – becomes a bone of contention for domestic political factions, undermining the possibility of developing a unified national strategy.

Nepal today is not just a country of Everest and spiritual practices, but a complex economic organism at a critical crossroads. It has demonstrated remarkable resilience to external shocks, including recent natural disasters, but its future depends on its ability to overcome deep structural contradictions. International institutions such as the World Bank, the International Monetary Fund (IMF) and the Asian Development Bank (ADB) forecast moderate but stable growth in the coming years. Projections for fiscal years 2025-2027 range from 4.2% to 5.4%.1This growth is expected to be fueled by a recovery in tourism, increased hydropower production and a steady inflow of remittances from migrant workers – the three traditional pillars of the Nepalese economy.

However, these positive signals are confronted with a harsh reality. The government’s ambitious 16th National Development Plan aims to achieve average annual economic growth of 7.3%, achieve middle-income status by 2030, and significantly reduce poverty. These goals are continually undermined by systemic problems that are not reflected in standard macroeconomic models. These include chronic political instability, inefficient capital budget execution that hinders infrastructure development, and extreme vulnerability to external shocks, especially climate shocks.

This foresight analysis goes beyond standard forecasts. We conduct an in-depth study of four fundamental pillars of Nepal’s economy, identify three wild cards that could dramatically change the trajectory of development, and based on this, model three plausible scenarios for the country up to 2035. Our goal is to highlight the hidden risks and opportunities that will shape the future of this Himalayan nation and open up new horizons for investors and businesses.

In Mustang, a dry trans-Himalayan region of Nepal once famed for its juicy apples, farmers watch their orchards wither as winters grow warmer and the snow that has fed their land with meltwater for centuries falls less. This is not an isolated incident. It is a harbinger of a crisis that is engulfing the entire country. For Nepal, located in the heart of the Himalayas, climate change is not an abstract threat of the future, but a harsh reality today.

While global headlines often focus on melting glaciers, the real catastrophe is unfolding below, in the valleys and plains where most of the population lives and works. Nepal’s climate crisis is not just an environmental problem; it is a cascading failure that is systemically destroying the foundations of the nation’s economy and society.

Nepal is extremely vulnerable. According to the Global Climate Risk Index, the country is among the top 10 countries in the world most affected by climate disasters. Forecasts show that warming here will occur much faster than the global average: by the 2080s, temperatures could rise by 1.2°C–4.2°C. The economic impact could be devastating. Without decisive adaptation measures, Nepal could lose between 2.2% and 7% of its annual GDP by 2050, according to estimates from the Asian Development Bank (ADB) and the World Bank. Already today, about 80% of the country's population faces climate threats.

In a world obsessed with growth metrics, Gross Domestic Product (GDP) has long been the undisputed king. It determines economic strength, influences political decisions, and shapes national strategies. But as global crises deepen—from climate change to rising social inequality—the question has grown louder: does GDP really measure what matters? This dissatisfaction is not new. Back in 1968, Senator Robert F. Kennedy gave a famous speech criticizing the Gross National Product (GNP), GDP’s predecessor, for measuring “everything except what makes life worth living,” including air pollution and prison construction, but not “the health of our children, the quality of their education, or the smiles on their faces.” Today, more than half a century later, this sentiment has evolved into a pressing global debate about the need for alternative development models.

Amid this search, the most radical and structured answer came from an unexpected place: the Himalayan Kingdom of Bhutan. The concept of Gross National Happiness (GNH) was proposed as a holistic development philosophy that prioritizes the well-being of people and the planet over mere economic production. The VNS is not just an ephemeral concept, but a holistic system designed to balance the material and spiritual needs of society.

But while Bhutan remains a pioneer, its unique path – that of a small, relatively homogeneous monarchy – raises questions about the scalability and applicability of the model to other contexts. This is where Nepal enters the global arena. With breathtaking natural beauty and deep structural problems, it represents a more complex and perhaps more relevant testing ground for the rest of the world. Nepal is a young federal democracy with a diverse population that is grappling with a legacy of civil conflict, deep-rooted social inequality, and acute geopolitical tensions.

Every day, the same scene unfolds in the departure hall of Kathmandu's Tribhuvan International Airport, one that has decisive implications for the fate of a nation. Thousands of young Nepalese, full of hope and anxiety, say goodbye to their families and head for the planes that will take them to Malaysia, Qatar, Romania or Japan. This daily exodus is not just a collection of personal stories; it is the country's most significant economic process and its greatest national paradox.

At the heart of this paradox is a fundamental contradiction: a country that is being abandoned by its most viable demographic group – youth – is simultaneously being kept afloat by a financial artery that these same youth feed from abroad. In the 2023/24 fiscal year, remittances to Nepal reached a staggering 1.445 trillion Nepalese rupees (about US$10.86 billion) – a figure equivalent to about a quarter of the country’s entire gross domestic product. This amount exceeds foreign direct investment and official development assistance combined, and is a major stabiliser for Nepal's fragile economy.

Nepal is a country of striking contrasts, caught between enormous potential and deep social frustration. It is a place where tourism has made a spectacular economic recovery coexists with mass migration of youth, and democratic processes are undermined by a pervasive mistrust of the political class. The numbers speak for themselves: a staggering 68% of Nepalis believe the country is heading in the wrong direction, citing corruption and bad governance as the main reason.

At the heart of this general discontent lies what might be called a "triple crisis" - three fundamental social problems that shape the political agenda today jobs crisis, which is pushing an entire generation abroad; cost of living crisis, which is not reflected in official statistics; and crisis of justice, fueled by endemic corruption and lack of government accountability.

Amid this discontent, a key question arises: Are Nepal’s political parties’ reactions a genuine response to the “voice of the people”? Or are we witnessing the use of sophisticated political technologies – methods used to influence public preferences and actions, often while maintaining the illusion of free choice? This article examines how the fundamental demands of Nepalese society are becoming a major battleground for political forces ahead of the new electoral cycle.

Ambika Phuyal, a housewife from the Jitpurphedi community, never thought of herself as an entrepreneur. When a local NGO offered her training in making liquid soap, she was skeptical, as was her husband. But something about the chemistry-like process ignited a spark in her. Despite the skepticism of those around her, she invested her time and money in buying materials, guided by a simple yet powerful idea: “Soap is an essential part of daily life.” Today, Ambika not only runs a successful small business providing soap to local restaurants, schools and neighbors; she has become financially independent and a role model for other women in her community.

Ambika’s story is not an isolated case. She is a shining example of a growing wave of social entrepreneurship sweeping Nepal. Young, educated, and ambitious Nepalis, tired of waiting for solutions from the government or big corporations, are taking matters into their own hands. They are creating businesses not only to make a profit, but also to solve their country’s most pressing problems. This wave, born from a unique combination of socio-economic pressures and youthful energy, is changing Nepal from within, offering a new, more sustainable and inclusive path to development.

In a small farming village in the hills of Nepal, women in bright pink and red saris are picking aromatic herbs. They are not cooking food, but creating an innovative product: biofertilizer based on a centuries-old recipe. Meanwhile, in the densely populated Kathmandu Valley, residents gather at an ancient stone spring that was recently brought back to life by the community itself. Far from sterile labs and tech startups, these scenes represent the cutting edge of a new but deep-rooted trend in Nepal.

In the face of contemporary challenges such as climate change, resource scarcity and rapid urbanisation, Nepal is turning to its most valuable and renewable asset – the age-old wisdom of its people and the power of collective action. This is not just a nostalgic return to the past, but a dynamic process of adapting traditional knowledge to create sustainable, low-cost and remarkably effective solutions. In this article, we look at three key areas where this trend is most evident: forest and water management, agricultural innovation, and the living legacy of traditional medicine. All of these areas share a common theme: the power of communities to take control of the future by drawing on the wisdom of the past.

Imagine a tourist standing at the foot of Everest who has just taken a photo and instantly sent it to his friends via a 4G network. This image, which until recently seemed like a fantasy, now reflects the astonishing reality of Nepal. The country, sandwiched between the world's highest peaks, is making an impressive technological leap that experts call "leapfrogging."

The essence of this phenomenon is simple: instead of consistently going through all the stages of technological development, as industrial countries did, developing countries skip over outdated and expensive technologies, immediately introducing the most modern solutions. A classic example is the abandonment of expensive landline telephone lines in favor of the rapid deployment of mobile communications.

Nepal has become one of the most striking examples of this “leapfrogging.” The country has turned its geographic and infrastructural limitations into a unique advantage, becoming a real testing ground for innovation based on a “mobile-first” approach — when mobile technologies become the main, not secondary, channel for the delivery of services. From finance and healthcare to education and government services, a mobile phone in the hands of a Nepali has become the key to a new digital era.

Imagine a Kathmandu resident walking down the street and seeing an old bus belching thick plumes of black smoke. In the past, he might have just shaken his head in disgust. Today, he takes out his smartphone, shoots a short video, and uploads it to an online platform. After a while, he receives a notification: his complaint has been accepted, and the municipal authorities are already dealing with the polluting vehicle. This is not a scene from the future, but a real-life example of how technology is changing civic engagement in Nepal, a country better known for its majestic Himalayas than for digital innovation. At the heart of this transformation are two interrelated phenomena: “open data” and “civic tech.”

To understand the essence of this quiet revolution, let us define these key concepts in simple terms. Open Data— is information that anyone can freely and without charge use, reuse, and distribute. Imagine a huge library where all the data collected by the state is stored: budgets, health statistics, election results, air quality data. For a long time, these “books” have been gathering dust in closed archives. The concept of open data is to put them on public shelves. And it is important not only to have legal permission to use (legal openness), but also technical feasibility: the data must be presented in a format convenient for computer processing (for example, CSV tables), and not as scanned PDF documents from which information must be extracted manually.

When you think of Nepal, your imagination conjures up images of the majestic peaks of Everest, the ancient temples of the Kathmandu Valley and endless trekking trails. This image is certainly true, but it is no longer complete. In the shadow of the Himalayas, in the bustling cities of Kathmandu and Pokhara, a quiet but rapid revolution is unfolding. What if the greatest peaks Nepal is conquering today are digital?

The world is increasingly talking about the "creative economy" - a sector that is based not on factories and natural resources, but on ideas, talent and technology. This is an economy where the results of intellectual activity are sold: design, software code, music, video, media content. It arises at the intersection of culture, technology and entrepreneurship. That’s the kind of economy that’s emerging in Nepal today, fueled by affordable internet, bold local innovation, and a new generation of creatives. This article looks at how a country known for its ancient culture is building its digital future.

While the world’s tech hubs compete to build metaverses and roll out 6G networks, an equally exciting, albeit very different, digital revolution is unfolding in the heart of the Himalayas. The Nepalese government has announced an “IT Decade” (2024–34), backed by an ambitious goal to transform the country into a major information and communications technology (ICT) hub, export services worth Rs 3 trillion, and create 1.5 million direct and indirect jobs within a decade. This bold strategy, supported by a budget of Rs 7.25 billion for ICT in the 2024/25 financial year and a comprehensive Digital Nepal programme, paints a picture of a nation that is actively building its digital future.

However, these impressive figures hide a complex reality, which can be called Nepal’s “great digital paradox.” Official government sources proudly claim almost 100 percent internet penetration – 99.38%. At the same time, independent analytical reports such as Digital 2025: Nepal, present a more restrained picture: at the beginning of 2025, the share of active Internet users was 55.8%. This discrepancy is not just a statistical quirk, but a key to understanding Nepal’s unique digital ecosystem. The high figure likely accounts for every active SIM card, including basic 2G/3G connections used primarily for voice calls and SMS, while the lower figure reflects the actual number of people actively using the internet. This gap between infrastructure coverage and meaningful usage is the main driver of the trend we call “Nepalization.”

Nepal’s 2022 elections were not just another democratic ritual, but a political earthquake with youth at its epicentre. The event marked the culmination of years of frustration with the new generation, which found expression in the “No, Not Again” campaign, which targeted the entrenched political elite that had been in power for decades. The result was a stunning success for independent candidates such as Balendra (Balen) Shah, who was elected mayor of Kathmandu, and for new political forces such as the Rastriya Swatantra Party (RSP). These victories were a direct reflection of the discontent of the youth and their determination to take the country's future into their own hands.

Nepal is at a critical juncture in its development, driven by its large youth generation. Armed with digital technology and a deep sense of disillusionment with the existing system, this demographic is no longer content to be left behind. Young Nepalis are actively reshaping the country’s political landscape, challenging the very foundations of the post-2006 democratic dispensation and initiating a national debate about Nepal’s future. This article examines the demographics, the evolution of activism from street protests to digital campaigns, the pivotal significance of the 2022 elections, and the deep frustrations and systemic barriers that young people face, shaping the nation’s dynamic and uncertain future.

Situated between two Asian giants, India and China, Nepal’s political landscape has long been characterized by turbulence. But 2024 has been the epitome of this chronic instability, with a kaleidoscopic shift in alliances that has cast doubt on the country’s ability to implement long-overdue economic reforms. The year began with one ruling coalition, and by midsummer, a previously unthinkable one had emerged.

In March 2024, Prime Minister Pushpa Kamal Dahal, better known as “Prachanda,” the leader of the Communist Party of Nepal (Maoist Centre), made a dramatic political about-face. He broke his alliance with the country’s largest party, the Nepali Congress (NC), and formed a new left-wing coalition with his main opponent, the Communist Party of Nepal (Unified Marxist-Leninist), or CPN-UML. This alliance, however, proved short-lived. Already in July, the political scene was transformed again. The two largest and historically hostile forces – the CPN-UML led by Khadga Prasad Sharma Oli and the Nepali Congress – agreed to form a “grand coalition”. This maneuver led to Prachanda’s resignation and KP Sharma Oli’s return to the prime minister’s post for the fourth time.

Nepal is at a critical juncture in its economic development. The government has launched an ambitious program of legislative reforms that many analysts have dubbed a “second wave” of liberalization. This process is not happening in a vacuum, but under pressure from powerful internal and external factors that are forcing the political leadership to act decisively and quickly. Understanding these drivers is key to assessing both the potential opportunities and the significant risks that the new laws pose.

The main catalyst for the reforms was Nepal's upcoming graduation from the list of least developed countries (LDCs), scheduled for November 2026. While this transition is a symbol of national progress, it also means the loss of preferential trade tariffs and other benefits that have long supported the country’s economy. As a result, Nepal is being forced to urgently shift from a model dependent on international aid to one that is self-sufficient, driven by trade and private investment. Added to this is the need to recover from the economic shocks caused by the COVID-19 pandemic and address systemic issues such as the growing trade deficit.