Poverty rate above national average in more than half of local levels

Kathmandu, Jan. 11 : The significant disparities continue to exist in degree of poverty across Nepal’s local levels and districts, according to the Small Area Estimation of Poverty, 2023 released by the National Statistics Office (NSO) on Friday.

The report shows that out of 753 local levels, 309 have poverty rates lower than the national average of 20.27 per cent, while 444 local levels have poverty levels above the national figure.

The NSO estimated poverty at the micro level by analysing data from the Nepal Living Standards Survey (NLSS) and the national population census using the Small Area Estimation (SAE) method. The latest NLSS, its fourth edition, was conducted in 2022/23 and published in 2023/24. According to the survey, 20.27 per cent of Nepal’s population currently lives below the poverty line, marking a significant improvement compared to previous report made public in 2011.

The poverty line has been defined as an annual per capita expenditure of Rs. 72,908. In contrast, during 2011, the poverty line was set at Rs. 19,261 per capita per year.

It has been observed that 18.34 per cent of the population in urban areas and 24.66 per cent in rural areas are living under poverty. 

Provincially, the highest poverty rate is in the Sudurpashchim Province and the lowest in Gandaki Province.

Poverty alleviation in Nepal is a major social issue and a priority for all three levels of government. 

For its implementation, poverty data at the local level is required. To meet this need, the National Statistical Office has estimated poverty data for 77 districts and 753 local levels using the Small Area Estimation (SAE) method, which is widely used in the country. At the local level, poverty rates range widely, from a minimum of 1.18 per cent to a maximum of 77.89 per cent.

The highest poverty rate, at 77.89 per cent, has been recorded in Junichande Rural Municipality of Jajarkot, reflecting severe deprivation in remote and mountainous regions. 

In contrast, the lowest poverty rate, just 1.18 per cent, is found in Gharpajhong Rural Municipality of Mustang, indicating comparatively better living standards and income levels.

In terms of absolute numbers, Kathmandu Metropolitan City has the largest population living below the poverty line, with 59,218 people classified as poor. Despite this, the poverty rate in the metropolitan city stands at 6.87 per cent, which is well below the national average. 

Several local levels in Sudurpashchim Province record particularly high poverty rates. Dhakari Rural Municipality (70.57 per cent), Sigas Rural Municipality (66.87 per cent), Kamalbazar Municipality (66.8 per cent), Shikhar Municipality (65.34 per cent) and Shivanath Rural Municipality (64.07 per cent) are among the most affected. 

Similarly, Krishnanagar Municipality of Lumbini Province records a poverty rate of 64.32 per cent, while Raksirang Rural Municipality of Bagmati Province stands at 65.64 per cent.

At the district level, the analysis shows similar disparities. Achham district in Sudurpashchim Province records the highest poverty rate at 49.58 per cent, underscoring persistent structural challenges such as limited access to education, employment, and infrastructure. 

Meanwhile, Kaski district in Gandaki Province has the lowest poverty rate at 5.63 per cent, reflecting stronger economic activity, tourism, and service-sector employment.

According to the study, overall, 34 districts have poverty rates below the national average, while 43 districts exceed the national figure, indicating that a majority of districts still face higher-than-average poverty levels.