Nepal is a poor country with rich people

Every time I visit Nepal, I feel that Kathmandu is so expensive and wonder how people who live there manage.

For a country, which is listed as one of the poorest in the world with Gross domestic product (GDP) per capita at just $743 you don’t get that feeling when you walk around the city.

If you look around, everyone has a new mobile phone, the latest iPads, fancy new clothes and a feast for every festival. It always makes me wonder how they manage to live like that when I know that the average salary in Nepal is NRS 10,000 ($100) per month.

Every time I go back, I can see that prices of things have doubled from last time and the quality has gone down. Having been to places like Thailand, Singapore and Malaysia, definitely the quality of things sold is Kathmandu is not very good.

I believe that I am among the average income family for Australia but still after paying mortgage and bills, there is not much left to play around so we have to plan well for any holidays and other luxuries in life but in Kathmandu people seem to be living a real luxury life. I know most of my friends/family in Kathmandu have one things sorted easily, they don’t need to worry about buying/building their own house with their salary. Either they have their family home or have some sort of inheritance sorted to build their home. I think that make them really rich because I know, most of our salary go towards the mortgage.

I went shopping with a few of my friends and cousins who live in Kathmandu and the way they shop is so different from the way I do. The things I felt were expensive, they thought were normal and just bought them. Seriously I can’t justify paying between NPR 30,000 – NPR 1,00,000 ($300-$1000) for a lehengha or sari which is to be worn once a year. I also can’t justify a new mobile/tablet every year just to look cool and I definitely can’t justify paying NPR 400 ($4.00) for a hot water with honey and lemon. A lemon in Nepal is NPR 10 and one spoon of honey is NPR 50 max so it sounds ridiculous that people are paying so much for it in a restaurant. They are paying NPR 2500 for a foundation and NPR 1500 for a lip gloss, seriously. Just a reminder again, average salary in Nepal is NPR 10,000 a month. I know it sounds OK in terms of dollar here but not in Nepal for sure.

I could go on and on but people in Nepal are happily paying this price. They say it is expensive but still pay for these luxuries without blinking hence my conclusion that Nepal is a poor country with rich people.

Do you feel the same? If you live in Kathmandu, how do you manage?

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45 responses to “Nepal is a poor country with rich people

  1. Most probable reason behind your observation might be related to any of the followings.
    1. Most people living in Kathmandu doest pay their tax fairly to the government.
    2. Not functioning government.
    3. Literate people but they dont know how to live in society and do their duty honestly.
    Following my visit to Nepal i saw big potential for your country to be a finest and wealthest nation.

  2. In Nepal now and just paid $3.00 USD for an entire meal for two people. 2 drinks- 2 entrees. Spent $1 on a fresh honey lemon ginger with hot water. The tourist places are obviously going to be more money- but not much. The most we have paid for a meal here is $30.00 and that was superr fancy. The locals in Kathmandu take bucket showers or shower in the polluted river because of the lack of clean water. I honestly am so confused as to where you have been. Travel??? These people are worried about basic needs– food, water, shelter, and health. We have walked alot of streets here in Nepal and see and talk to the people and they are struggling! We always over tip here and barley bargain– The look on the waiters face when we give them $2.00 is astonisment. They cant even believe some one is handing them 200 rupee ($2). They are also extremely thankful for the two extra bucks. Im experiencing a much different perspective. That being said this Country is beautful the people are so stronge mentally and physically. The mountains are the best views in the world. There so devotied in their faith that its inspiring –and warmly welcoming.

  3. I am a person go into many rural areas and help to assist about educational for poor , orphan children. Seeing million cases and poverty in Nepal.no words can explain

    The government and the rich in Nepal have no heart for their own people.

    Right in Kathmandu, thousand poor family 4 or 5 people rent one room with salary about 200 or 300 for the people have master degree job is normal.

    20 or 30 percent of the rich , have lands and all kind of privilege the rest live not even 100 $ USD, for a month.

    Sickness and disease is their friends.

    Cast systems are worst , I see ladies 35 or 40 years old look at 60 years old in other countries .

    Heart break ..

  4. That is just a very, very small percentage. Who in the high cast or some kind of rich, one of their source of income is money from renting house or by relative in America, or Us trails send back home all income. Or money under table of government officers
    Most is poor, poor, poor, poor, but they are very much try to show up.

    When debt, debt, debt, as I know many Nepali families.

    If you don’t have deeper observation you just seeing the surface.

    Thousand of organizations from abroad trying to help , poor, disable, blind, ……

    One of the worst countries in the world.
    Youth no future 90 percent of the young men and women have to leave home husband or wife go work as slavery oversea and each year the number of Nepal worker die in other country average 900 to 1000 persons each year. This number were given by Nepal government.

  5. Nepais a poor Country but suprisingly Nepalese do not have to struggle for fooding and lodging. Nepalese are really blessed by “PASHU-PATI-NATH” meaning Lord “SHIVA”. In Nepal we pay 5 times more than America for the same vehicle (four wheeler and two heeler). Most City dwellers affords SUV here in Nepal even if it is 5 times costlier than other parts of the world.

  6. You are right to some extent but there is sharp contrast between the haves and haves not in Nepal. You may have been quite lucky to be hanging around with some rich folks in Kathmandu but this article explains the financial condition on the surface. Just have a look at people in rural areas too.

  7. Why do people even think that people from Nepal are poor ? I have seen the pilots , engineers and doctors earning more than 40,000 dollars a year (3 thousand dollars per month )without any corruption . The salary here is based on the job you do . Now I hate US Embassy that thinks that all people here earn very less salary and rejects students to study in US .The average salary here is 100 dollars and we need to do something to raise that . People who earn 100 dollars per month have some sort of inherited properties as well . However that 100 dollars is enough for those people because if you would rent a room , they would take 50 dollars and 50 dollars remaining would be enough to eat and survive as 50 dollars is equal to 5000Nrs

  8. Very interesting post, I have never been to any of the places that you mentioned so I like learning from other folks adventures in their lives.

  9. Exactly, I always been saying almost same thing here to people when I have to explain like how is Nepal and How poor it is and what’s the standard of living of people there.. Unless one has to explain to some one, like Australian who never been to nepal, we don’t reliaze its not actually so much of easy case to explain and make them understand.
    Few weeks back when I was trying to explain a girl I met and started talking in train, actually it was more of like she asked me if I was from India and when I said Nepal, she wanted me to give her tips in best and economical strategy to effectively visit Nepal.
    During that communication while trying to explain life standard of average Nepalease, I felt how hard it was to make her understand and give her the pretty accurate picture.
    First difficult point was, since in GDP list like u said, Nepal almost comes in last group of poorest of poor countries among majority of African poor nations. But irony is when we read or see in movies or documentaries about poor African nation, the people their are actually poor to the point they have hard time getting day to day food and water and basic necessities of life, its all about struggle for very very basic necessities of life and that gives pretty accurate picture of poorest African nations.. But Nepal even though comes in same range/list as per such calculated list, average people have far better living condition than those explained and ironically some time equivalent of other developing nations.
    So how come, my straight forward answer is, people in average in Nepal are not poor, they aren’t super rich but well not poor either that they have to struggle to acquire minimum calorie intake to housing to basic health care, etc.. Most people have inherited land and houses of their own, more so over in remote parts. And most people in village areas, even in cities like pokhara, have some land other than. House to grow vegetables and staple crops for themselves, so even though may not be sufficient for them to live off the land completely, partially most have that arrangement.
    The problem of Nepal is its political system and very disorganized corrupt governmenance. The so called politicians are without any moral values and lack will and determination for sake of country. And there is basic laid back or let it be type nature among people too (must be a cultural factor, please check an excellent Ted talk in office management and organisation in Indian cultural context while incorporating cultural let it be sense in general).
    Thus government,I.e.country is poor but people themselves are not. Actually market price of basic necessities to luxury items is almost comparable of Australia and even though with far far less average disposable income, people some how are able to afford such luxury that people here in Australia do) .. And how that is happening is very hard to explain.
    Thus its unfair to picture Nepal with the same eye as one see poor African nations..just because such GDP comparison like list of countries shows Nepal be alike… I hope I made some sense..

    Thanks for giving me some food for thought in this fine Saturday morning.. Lovely day today here at Sydney, isn’t it, M?

    • Just to speak about your point on Africa, you should know that not all of them are like that either. Average Africans tend to be more educated, well-mannered and even richer than average Nepalis. It’s media that portrays them as very poor, although not all of them are. Their country’s infrastructures are even way better than ours in any city or town.

  10. Yes the average wage might be $100 a month but there is big divide beetween rich and poor..the poor are the majority and could never afford the items you quoted… many people earn much less than the ‘average’ … otherwise 100 wouldnt be the average…
    I’m in Kathmandu at the moment and many people I’ve met earn much less than 100 $ a month. They live simply without the luxury you talk about.

  11. Lekhnath Baskota

    At first .. I would like to thank for to visiting Nepal ..
    It seems that you had only visited the Kathmandu as Nepal..
    In the case of Nepal or other poor developing countries ,
    You can’t judge the condition of their residence and capacity to afford luxuries with survey of capital city of a country ..

    most of Nepali are poor in the rural area of the country and would like to Inform you that 80% nepali represent from rural areas .. they even can’t afford food for survival .. luxuries are far away from their dreams ..
    yes the people are spending lots of for luxuries and tablets ,I phone etc.
    but that is not because of their income (rs.10000 per month )
    it is because of Remittance..
    May you dont know that from every family of neplease minimum 1(one) member is in abroad as a worker ..
    Mmm..
    UAE,Qutar,Malasya,Saudi and like other countries who have provide neplease to go there with work visa Korea , Barahin etc..
    There they are earning and saving Rs.30000 minimum as and average is Rs.50000 per month..
    and they are sending the earning to their family and its making the capacity to afford luxuries ..
    but in the other hands people are suffering from food crises and proverty ..
    they even cant afford better education and primary health service in the rural area of many districts of Nepal (Manang , mistang , bake , Bardiya , sunsari , morang , jhapa , Ilam etc all of..) .
    there also if you will judge with capital of distric and cities you cant get better information about Nepali ..
    for that you should visit the rural area of Nepal ..
    Please come again to see the real condition ..
    It’s all because of corrupt government and officers ..
    And also the lack of education , awareness .
    , of the people in Nepal ..
    so Nepal is a poor country with foolish and crazy people as like I.

    Note :- My English is not very good but if you would like to know more about the country then you can contact me I will try my best to make you satisfy .

    Thank you !!!!!
    Name :- Lekhnath Baskota
    Contact ;- 9779814317145
    place ;- Morang , Nepal
    Facebook :- Lekhnath44@yahoo.com

  12. it is due to excessive black money in nepal.

  13. How much tax (salary, profit, someone mention inheritance, yes inherent tax, etc), customs and duty do average Nepali pay to the government coffers? It’s a tax free country therefore no wonder why people are rich and country is in rag. Not to mention the corrupt officials and their big spending offspring.

    I hope the mystery has revealed.

    • Exactly, I always been saying almost same thing here to people when I have to explain like how is Nepal and How poor it is and what’s the standard of living of people there.. Unless one has to explain to some one, like Australian who never been to nepal, we don’t reliaze its not actually so much of easy case to explain and make them understand.
      Few weeks back when I was trying to explain a girl I met and started talking in train, actually it was more of like she asked me if I was from India and when I said Nepal, she wanted me to give her tips in best and economical strategy to effectively visit Nepal.
      During that communication while trying to explain life standard of average Nepalease, I felt how hard it was to make her understand and give her the pretty accurate picture.
      First difficult point was, since in GDP list like u said, Nepal almost comes in last group of poorest of poor countries among majority of African poor nations. But irony is when we read or see in movies or documentaries about poor African nation, the people their are actually poor to the point they have hard time getting day to day food and water and basic necessities of life, its all about struggle for very very basic necessities of life and that gives pretty accurate picture of poorest African nations.. But Nepal even though comes in same range/list as per such calculated list, average people have far better living condition than those explained and ironically some time equivalent of other developing nations.
      So how come, my straight forward answer is, people in average in Nepal are not poor, they aren’t super rich but well not poor either that they have to struggle to acquire minimum calorie intake to housing to basic health care, etc.. Most people have inherited land and houses of their own, more so over in remote parts. And most people in village areas, even in cities like pokhara, have some land other than. House to grow vegetables and staple crops for themselves, so even though may not be sufficient for them to live off the land completely, partially most have that arrangement.
      The problem of Nepal is its political system and very disorganized corrupt governmenance. The so called politicians are without any moral values and lack will and determination for sake of country. And there is basic laid back or let it be type nature among people too (must be a cultural factor, please check an excellent Ted talk in office management and organisation in Indian cultural context while incorporating cultural let it be sense in general).
      Thus government,I.e.country is poor but people themselves are not. Actually market price of basic necessities to luxury items is almost comparable of Australia and even though with far far less average disposable income, people some how are able to afford such luxury that people here in Australia do) .. And how that is happening is very hard to explain.
      Thus its unfair to picture Nepal with the same eye as one see poor African nations..just because such GDP comparison like list of countries shows Nepal be alike… I hope I made some sense..

      Thanks for giving me some food for thought in this fine Saturday morning.. Lovely day today here at Sydney, isn’t it, M?

  14. it’s because of the remittance. …all those fancy phones and dresses u see were sent by their family’s and relatives residing abroad….and currency exchange rate is spectacular 1us $ =100rs ….u get the picture now …

  15. It’s because they all live together and share resources and costs, so the money they earn they keep all for themselves for the most part and can afford to blow it on clothes and phones.

    In the West we don’t live with our entire extended family but in India/Nepal they do, thus they have a jointly owned house passed down from generations long since paid off, with no property taxes, and everybody pitches in like 10% of their income which is more than enough to cover food + water/electricity bills of the entire household. They can also get credit from each other and not have to go to moneylenders which sap their income through high interest rates.

    The downside is you have to live with your entire family and in-laws.

  16. its your thought that makes different thinking nepal as a poor country has made ur subconscious think every think in nepal should be cheap .nepal ppl are more richer them ,any other countries i am 26 years old and i live in hongkong for half year and back to my country half year when business season in on now i own 5 property here in hongkong and i have 2 well designed luxury homes in nepal which is over 1.5million us doller just for two homes.and i havent added hk real estate sum . i hate the fact ppl think us poor judging the state of my country .

  17. But isn’t NPR 10 equivalent to $0.10? That’s much cheaper than the lemons here, and people easily spend $15.00 (NPR 1500) on something just as frivolous as lip gloss.

    Granted, the US is much richer country. Interesting article!

  18. Indeed, the way you said is 100% correct without any instinct of doubts. People in Nepal(mostly Katmandu), it seems they are in rush to pursue things, things that are way ahead of their capacity to afford, things that are not in real but fictitious (in terms of quality, mostly Chinese product). This is happening because people are in rush adopting so called modernization, without any second thought and consequences you have to bear it.
    People seems to believe in the way of impression than the expression, I mean people are judge with their way of wearing, spending money(prodigality), rather than their talent and ability.

  19. Whocareswhoami

    I didn’t really think like that ever before. Yes it is true that the rate of price in each and every goods are really expensive causing many of us to lose our temper too. Anyways, what can we do with the growing competition among the people? Surely we are far compared with developed country. But the resources of our country are adequate. If we utilize them, we won’t be a inch far from other countries. Best of luck to Nepalese people to unite and be hopeful to see prosperity in country!!!!!!!!!! By the way this gravatar are hilarious……

  20. because of the corruption from the core …

  21. Many people work abroad. So there is no problem of money. Also in Nepal we have enough public transportation in city so we are not worried about buying private cars or bikes. Like everyone mentioned lot of families are joint families and do not require seperate houses for everyone.therefore money they make are spent on food and festivals

  22. Yes,and I saw many times the coffin sent from the middle east country,in the airport and Pashupatinath.
    In the Pashupatinath,one small girl was crying,in front of the dead body,I saw that coffin had a baggage tag from the Qatar.
    She said to dead body, ‘Dai,Dai!!!’ that body was looks like just 30 years old.
    I also had tears.
    Also you can see many empty coffins sent from middle east country in the Pashupatinath.
    You are Nepali so,you know well than me about that crisis.
    Nepal’s economy is growing by the part of shadow of their hard work and send money from the foreign country.

    In 1991,When I was visit Nepal,first time,many Nepalis didn’t know the Pizza…but nowadays,when I ate the cheap plain cheese pizza at the pizza hut,
    many Nepalis was eating full of the topping of pizza.hahaha.
    But now also some really poor people don’t know about the pizza.

  23. Hi,I’m Japanese,living in Japan,I love nepal too.
    When I was visit to Nepal at first time, it was in 1991.
    At that time, price of 1 cup of tea at the local shop,was just 1 to 2 Rupee.
    Now more than 10 Rupee over,and petrol,gas,food,clothes…everything are going to high price.
    I visited to Nepal over the 10 time and 2 year lived too.

    And I have many friends in Nepal,who living big house,that average cost is over the 50000 USD,now they are becoming to rich than middle class of the advanced country.

    I now really poor people also nowadays are poor too,but in 1991,many poor people slept in the street,but now,we can seem that people.only few.

    • I know things has changed a lot in last few decades but I think poor people are going to work in Arab countries to work instead of staying in Nepal .But we always hear that in news how terrible their situations are aboard as well.

  24. I always wondered how it worked, if the good were cheaper relative to wages.

  25. I have thought about this too, and have come to couple of conclusions. 🙂

    1) Like you pointed out in the article, most people inherit paternal property. This dramatically reduces the big costs.
    2) Most families don’t have private vehicles or just have motorcycles, which are cheaper. So, neither do they need to invest on the vehicles, nor the gas.
    3) Cost of higher education (not necessarily until high school) is much less compared to that in foreign countries even relative to the income.
    4) There is no vacation culture. Though this is increasing at recent times, most of the vacations are within the country or to India, which is usually cheaper than traveling to other foreign countries.
    5) I think one most important factor is that there is a lot of corruption, illegal activities and bribery in Nepal. Even though the average income maybe Rs. 10,000; I’m sure that large percentage of the family living in Nepal have some illegal sources of income.
    6) Once you buy a house, there is very rarely recurring monthly fees like insurance, HOA fees etc.
    7) People very rarely pay taxes.
    8) People don’t eat out as often as in the west. People do eat out a lot during the day, but mostly snacks.
    9) The maids and menial workers are mostly exploited. They aren’t given as much money as they deserve. Those people aren’t definitely carrying fancy smartphones and expensive saris, but exploiting them saves their employers’ family enough money to be able to afford these.

    Even with all these accounted for, I still feel like how much people seem to spend on luxury items like nice phones, nice clothes etc., and how much they earn somehow doesn’t add up. So, I’ve come to conclusion that we Nepalese generally have large families, relatives, and friends circle. And there is so much competition and show off going on all the time. I think people have different priorities living there, meaning they probably cannot truly afford all the things they spend their money on. In conclusion, I think it’s partly the different way of living, and partly not-so-rosy sides of Nepal that makes this possible.

    • I agree with you 100% that there is big competition in middle class family in Kathmandu and they go to extreme lengths to out do each other. I feel sorry for some as they think that is the way to live a life .
      Thank you so much for sharing your thought and I love your blog.It is so thought provoking 🙂

  26. I’m not quite of your opinion. of my friends in kathmandu I saw most of their money count before they purchased. although as regards a cell phone or motorcycle, as I also often amazed who has everything an expensive smartphone. However, when I think of the many street children, which I had cooked food at that time, or the people in the slum in boudha, I share your opinion less. it will be the least of which are as you describe. or?

    • The middle class families in Katmandu was the center of m y blog post but I also kn ow that there are lost of poor people who struggle to eat 2 meals a day. You do a great job volunteering in Boudha 🙂

  27. Not only in Nepal, throughout the world the expenses are increasing. And the tragedy with Nepal is just that. Other countries along expense are extending in technology and income sources unlike Nepal. And this basic reason has compelled it to turn into a country under the line of poverty.

  28. Do your friends earn their living or rely on their rich husbands or parents? That could be the reason for their extravagant shopping. I have found that most of my friends in Nepal have become frugal once they started earning their own money.

    But, Nepal is very expensive. I feel that everytime i get there. I think the main reason for “poor country rich people” is that nobody pays taxes. If you have some land in Kathmandu, you are bound to be rich because of the land prices.

    • Most of my friends do have rich husbands and parents. But I also have some who work 9-5 but still are enjoying the high life.I never get how they can have so much money to spend.

      Nepali is getting expensive day by day and we feel more because we go there after a gap.

      Nepal had tax system now but most people don’t need to pay the tax until they need something done from government offices.That is so bad for the future of the country and pray that it will change in our lifetime.

  29. True and sad. I blame it on the competition mentality. Specially in events, when someone think they can spend and justify it with numerous reasons, it will put pressure on those slightly under them, and it goes on. And there will be people judging. Everything is celebrated with a feast now. Even a child’s pasni or bratbandha is no more about the child but about the feast. Even if you insist on keeping a wedding simple, not everyone will agree and somehow costs will expand beyond imagination. The price you stated for sarees etc. are quite expensive for a middle class, but yes for weddings they will consider it. I don’t get the obsession with latest technology either, being a technological person myself.
    I used to think Nepal is a richer country of poorer people because government has some money that it doesn’t use wisely, but recently I came to know it’s the opposite, which is sad because it is a country of poor people too. That money should go to help people in need instead. Or at least people should invest in their community to make things better rather than spending unwisely. People love thinking it’s government’s task to do it for them, while knowing that it won’t!
    For money during events I think some people own lands, earn from rent if they have a house in Kathmandu, or even take a loan. Businesses could make you rich but there is no way you could afford it all by salary. Regardless, it’s not wise at all.

    • Don’t even let me start how much feast they can afford these days. These days there is big party for birthdays, Teej, anniversary, every occasion they have to celebrate with big bang.

      And I was shocked every time I enter any boutique. I will never pay $100 for a blouse but it seems like people there are paying the price as there are thousands of them around and seemed to be doing well.

  30. I felt the same way, there is this allure that wealth and the current gadgets make people happy and people are always buying. The saddest part is the big divide between the rich and the poor in the capital. The poor have nothing and the rich as always spending. The “good” restaurants are expensive, similar to the prices of the states and don’t even get me started on hotels. Unless you are super rich, it’s hard to stay in 4 star hotel, well quite impossible. I am just disheartened by where things are going in Nepal.

    • You are so right about the big gap between poor and rich in Nepal. And every year the gap widening that I am not sure things will get better for people. Every time I read news from Nepal, there are more bad than good news.
      I am with you and so disheartened by where things are going in Nepal. I pray something better will come in near future.

  31. i think it is only 5-10% case,average Nepali standard is poor.Reality can be seen few kilometer away from the Kathmandu Valley.

  32. This is so true!! After coming to Nepal I have been in shock at the prices of things that are for sale. Like you, I am constantly wondering how the people have such up to date technology and outfits. It has been something that has been really confusing me since I arrived.

    Recently, we sat down with my MiL and discussed weddings as M’s bahini needs to be married either this year or next and then it will be our turn. The prices she was speaking about had me in a state of shock. They were expecting to spend a minimum of 50 thousand pounds for her wedding and about 40 thousand for ours. Then on top of that price I would have to pay for all the sarees for the women, golden rings for all aunts and uncles as well as a ceremony in England and flights for all family back and forth. I had no idea how on earth they could afford such large figures when back home in England my parents do not even have a mortgage.

    It left me feeling a little angry the more I learnt about the money dealings in Nepal e.g. dowry expenses in the villages and bribes to government officials. The sum of figures they were casually discussing left my head dizzy and completely shocked me. And then, people would assume I was of a similar standing or more as I am from a ‘foreign’ country so I must be rich which is completely the opposite case.

    Thank you for posting such an interesting article! It was really enjoyable to read and it is still making me wonder over this topic!

    • OMG wedding is another world in Nepal. I remember during our wedding, both me and AS were talking about small wedding but both our parents were adamant that it has to be a big one as it is first for the family in both the side so we end up having wedding with 2 big receptions. In each reception, there were over 1000 people so the cost of the wedding was quite high.
      As I know M is from Bhaun caste, I know what you mean about what is expected of you. In their culture, bride’s family has to give so much to groom’s family that I find it ridiculous. I hope they don’t expect all that from you as well as it will be too much. I can understand sarees but gold is too high expectation.

      I also didn’t understand the part where you are expected to pay for flights to go to England. In my opinion if anyone wants to attend your wedding, they should buy their own tickets and if they can’t afford it then maybe they should be happy to attend the Nepali wedding only. I hope this will all be solved before your big day so you can concentrate only on your dress and the day, not on other unnecessary things that is not your headache.

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