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Aging populations used to be a challenge mostly for wealthier nations like Japan. But now, it’s a shared reality—and Nepal is no exception.

According to the Population Division at the National Statistics Office, Nepal’s population is rapidly entering a demographic transition. The proportion of people aged 60 and above rose from 8.1 percent in 2011 to 10.2 percent in 2021. 

Binod Sharma Acharya, director at the division, said on Monday that Nepal is expected to become an aging society by 2054. This will naturally pose significant challenges in housing, healthcare, social security, and economic support.

The global average life expectancy rose from 64.2 years in 1990 to 72.6 years in 2019. Acharya said that life expectancy is projected to reach 77.1 years by 2050. In other words, by 2050, one in every six people globally is projected to be elderly—aged 65 or above.

In Nepal, about 80 percent of the population is expected to live up to the age of 60. Among them, approximately 85 percent of women and 75 percent of men are likely to reach this age. Among households in the richest quintile, 84.7 percent of individuals are expected to live up to 60 years, while only 77.7 percent of individuals from the poorest households are expected to do so. 

Since 1991, the elderly population in Nepal has nearly tripled. The population pyramid indicates a shift from a youth-dominant structure to one increasingly composed of older individuals. This is mainly due to declining birth rates and increased migration abroad.

The child population is decreasing, and so is the working-age population, resulting in a higher dependency ratio. The census data of 2011 and 2021 show regional variations in the distribution of elderly populations. During this period, the hill region saw a notable increase in its elderly population.

In 2011, the elderly population in the hills was 25.7 percent, which increased to 43.6 percent by 2021. This trend is also evident in the mountain and Tarai regions, though at slightly lower rates. However, compared to the Tarai, the hill and mountain regions have seen a more rapid increase in the elderly population.

Thanks to better healthcare, safer water, and improved nutrition, we are living longer than ever. At the same time, families are having fewer children. In 1950, women had an average of five children; now, that number has fallen to 2.3, according to the UN World Population Prospects, 2022.

For years, many countries benefited from a “demographic bonus”—a large, young workforce that powered economic growth. But now, as that workforce shrinks and the elderly population grows, the bonus is turning into a demographic dilemma.

As elderly population is poised to rapidly expand, governments and policymakers around the world need to consider its various challenges and implications. Chronic illnesses like heart disease, diabetes, and dementia are on the rise. Yet many countries don’t have enough doctors, nurses, or long-term care facilities trained to manage elderly health needs.

Also, fewer workers and more retirees mean economic trouble. The International Monetary Fund (IMF) has already said that pension reforms are necessary in many nations to avoid fiscal crises. But not all aging is equal. In many developing countries, people grow old without pensions, healthcare, or secure housing. The World Health Organization (WHO) notes that aging in poverty is often “aging with hardship.”

As the workforce shrinks, economic growth slows, and industries face labor shortages. To offset this, governments and policymakers should come up with a sound plan.

The demographic shift will transform more than just health and economics. It will reshape how we build our infrastructure, how we design transportation, and how we organize work and education.

Hydropower generation in Nepal began over a century ago with the 500-kilowatt Pharping Hydropower Project, the country’s first. Initially, the government held a monopoly on hydropower, and only a limited number of projects were developed. By 1989, Nepal had generated just 167 megawatts of electricity. After the first People’s Movement in 1989, the country transitioned to a multi-party democracy. The 1990 Constitution embraced a policy of liberalization, opening the door to private sector involvement in industry and business, which significantly increased the demand for electricity. Former Energy Secretary Devendra Karki notes that hydropower development has since seen visible progress.

The government alone could not meet the rising electricity demand. The Electricity Act of 1989 paved the way for private investment in hydropower. In 1995, the first private sector project, Himal Hydro, signed a Power Purchase Agreement (PPA) for the 60-megawatt Khimti Hydropower Project, which was connected to the national transmission grid in 2000.

According to the Independent Power Producers Association of Nepal (IPPAN), private developers have added 2,740 megawatts to the national grid over the past 24 years. The private sector now accounts for about 80 percent of Nepal’s hydropower generation, says IPPAN General Secretary Balram Khatiwada. In contrast, government projects contribute about 700 megawatts. In recent years, Nepal has made notable strides in hydropower generation, electricity export, green energy promotion, and private sector engagement—moving the country closer to energy self-reliance and economic growth.

Nepal has vast potential for hydropower generation. Government data suggest that approximately 72,000 megawatts can be generated economically and technically. However, current production stands at around 3,400 megawatts, with PPAs signed for an additional 11,000 megawatts.

To address chronic load-shedding, the government declared an energy crisis in 2015 and ramped up hydropower development. At one point, Nepal was importing electricity worth Rs 22bn annually from India to meet demand. Since then, domestic electricity production has surged. Today, surplus electricity during the monsoon season is exported to India, and in Nov 2024, Nepal began exporting 40 megawatts to Bangladesh.

In April 2023, Nepal and India signed a long-term agreement to export 10,000 megawatts of electricity, setting the stage for Nepal to become an energy-exporting nation within the next decade. The private sector has invested approximately Rs 600bn in hydropower, with an additional 4,200 megawatts currently under construction. IPPAN estimates that total investment could reach Rs 1,500bn when ongoing projects are included.

Total investment in completed and ongoing projects stands at around Rs 1,300bn, which includes bank loans, equity capital, and contributions from around 400,000 individual investors. While hydropower development initially occurred in a handful of districts, it has now spread to 70 of Nepal’s 77 districts. Energy projects are underway in nearly all districts except Bara, Bardiya, Bhaktapur, Dang, Dhankuta, Salyan, and Saptari.

According to preliminary IPPAN data, hydropower development has contributed not only to electricity generation but also to socio-economic development in remote areas. These projects have built 3,300 kilometers of roads, 350 kilometers of tunnels, 140 health centers, 153 schools, 95 drinking water systems, and 45 irrigation systems.

To address local needs, the sector has also supported the hiring of 200 teachers and the provision of 30 ambulances. A one-megawatt project under construction can employ about 300 people, while operational projects employ around 10 people each.

To build on this progress, the government has introduced the Energy Development Roadmap and Action Plan 2024, aiming to expand production, consumption, and export of electricity. The goal is to generate 28,500 megawatts of electricity within the next decade. Former Secretary Karki emphasizes the importance of public-private collaboration to implement the roadmap effectively. “The roadmap has been prepared, but to ensure it is not derailed, we must revise laws and create an investment-friendly environment on time,” he says.

Hetauda has transformed into a bustling city since becoming the capital of Bagmati Province. Once a modest marketplace just seven years ago, Hetauda’s streets are now alive with activity, establishing it as a key destination in the province. Although it previously served as the headquarters of the Central Region, it hosted only a handful of regional offices. With the advent of federalism and its designation as the provincial capital, over five dozen government offices have been established. The surge in traffic has also posed a challenge for the traffic police on major roads.

The hospitality sector in Hetauda has flourished. Numerous hotels have opened, and the city is emerging as a desirable destination. The population is steadily increasing due to internal migration. Hetauda has also become an educational hub, attracting students from the Tarai region.

Healthcare services have improved significantly. Hetauda Hospital, now recognized as a referral center, boasts an impressive new building and enhanced services. The Madan Bhandari Institute of Health Sciences is producing skilled health professionals from the city. Hetauda also shows promise in sports development, with a stadium constructed in Gauritar to host international events.

Several roads now connect Kathmandu to Hetauda, and the Madan Bhandari Highway has transformed the eastern part of Hetauda and Makawanpur. The dilapidated Janakpur Cigarette Factory has been repurposed, and the provincial government has beautified the Janaki Temple. Permanent government structures have been erected, making Janakpur not only a religious destination but also a center for education and development.

Biratnagar, the capital of Koshi Province, was traditionally known as an industrial city. Since becoming the provincial capital, it has grown into a vibrant marketplace. The presence of provincial offices has increased the population density, although permanent provincial infrastructure is still lacking. Roads, healthcare, and education sectors have seen some improvements, including the upgrading of Koshi Hospital. Industrial expansion and new business centers have added to the city’s energy.

Pokhara, long a tourist favorite, has flourished further as the capital of Gandaki Province. The opening of an international airport has boosted domestic tourism. While permanent provincial structures are still under construction, significant progress has been made in urban development and tourist-friendly infrastructure. The city’s cleanliness and aesthetic appeal have improved. With its smart city initiative, the number of hotels, restaurants, and tourism businesses has grown. The provincial government has also made efforts to conserve Fewa Lake and has declared Pokhara the tourism capital of the province. Additionally, Gandaki University now attracts students from 53 districts.

In Lumbini Province, Deukhuri in Dang has emerged as a growing city after being designated the provincial capital. The planned development of physical infrastructure has begun in earnest. The Provincial Infrastructure Authority is driving urban development based on a master plan. Urbanization has started to take root in the traditionally agriculture-based region, and the government is working toward an eco-friendly, green capital. As a new capital in a relatively undeveloped area, Deukhuri presents an opportunity to build a well-organized city from the ground up.
Birendranagar, the capital of Karnali Province, serves as a hub for neighboring districts. Road development is underway, and a provincial stadium is being constructed in preparation for the 10th National Games. Urban settlement development is progressing rapidly. The city is becoming both an educational and residential destination, increasing population pressure. With the pace of urbanization accelerating, property prices and rent have risen. The establishment of higher education institutions has further boosted its profile.

Dhangadhi, capital of Sudurpaschim Province, has also grown significantly. Key roads have been upgraded, and the Nepal-India border gate has been streamlined. Administrative infrastructure is being developed, and Dhangadhi is becoming an educational hub, bolstered by the presence of Sudurpaschim University. Trade with India has intensified, and the construction of residential and commercial buildings has picked up pace. The provincial government has launched special programs targeting women’s empowerment and youth development. Godavari in Kailali has been declared the province’s permanent capital.

In the recently-concluded Nepal Bar Association election, the alliance of the Democratic Lawyers Association (DLA), close with the Nepali Congress, and the Progressive and Professional Lawyers Association (PPLA), close with the CPN-UML, achieved a landslide victory. Lawyers’ associations close to the CPN (Maoist Center) and the Rastriya Swatantra Party (RSP) had also formed a separate electoral panel but failed to secure a single seat in the 25-member working committee.

As a member and voter in the Supreme Court Bar, I believe these professional associations should remain purely professional. However, they act like sister organizations of political parties, which is deeply concerning. In these elections, political party leaders often nominate and back the contenders, turning the process into an extension of party politics. A troubling trend has emerged where the same coalitions formed at the central government level are replicated within these associations. As a result, professional bodies established for the betterment of professionals have become just as weak and unstable as the country’s central politics.

No political party or their affiliated organizations have the courage to contest elections independently—they almost always form coalitions, which is deeply concerning and detrimental to democratic practice. In a healthy political system, both the government and the opposition should be strong and functional, but that is not the case in Nepal.

The opposition has failed to fulfill its role. As a government-in-waiting, it should hold the ruling party accountable, scrutinize its actions and prevent misuse of power. At the same time, the government should focus on effective service delivery, development and be accountable to the parliament, operating under the rule of law. But neither side is doing its job.

Worse still, when it comes to covering up their wrongdoings—especially corruption—the top leaders of the major parties seem to stand united. There is neither peace nor prosperity, neither good service delivery nor meaningful development. What prevails instead is nepotism.

The government is often influenced by brokers and businesspeople, who support those in power but deliver no benefits to ordinary citizens. Most appointments are made to serve the interests of middlemen rather than the public. This troubling trend persists, regardless of which party is in power.

Because of these ongoing wrongdoings, people have started questioning whether the problem lies in our constitution and current political system. Some are even wondering if returning to the old system might be better. Recent protests have further fueled public sentiment in favor of a systemic change. Due to the misconduct of politicians and the deep politicization of every institution, our political system—and indeed our democracy—is now at risk.

Within the country, many people oppose certain aspects of the constitution, such as the secular state, federalism, proportional representation and inclusivity, even if we are to ignore neighbors’ concerns. There are growing calls for constitutional amendments. However, the government has been ignoring these concerns, which has led to widespread public frustration. Without addressing these issues, how can the country achieve peace and prosperity? How will economic growth take place? How can citizens expect efficient service delivery?

The major political leaders—Sher Bahadur Deuba, KP Sharma Oli, and Pushpa Kamal Dahal—must reflect and reform as the public has entrusted them with power time and again. This is a crucial moment: if they fail to correct their course, it will have serious consequences for our political system, as public sentiment is rapidly shifting due to their repeated misdeeds.

Another troubling situation lies within the political parties themselves. The current leadership has weakened these parties, as there is little to no value given to dedicated leaders and grassroots cadres. 

Why has politics been made so dirty by these leaders? Why can’t these parties contest elections alone? What has weakened the foundation of these parties so badly? The public is convinced that, since the leaders are corrupt and have no intention of reforming themselves, the problem cannot be resolved. This crisis stems from extreme politicization and the growing trend of political coalitions. As most of them are corrupt, they have joined forces not only to cover up their irregularities but also to continue them. Today, political parties and their leaders seem to lack any real ideology—corruption and nepotism seem to be their only focus.

The Nepali Congress, founded in 1950, has a rich legacy in Nepali politics, having played a crucial role in every major political transformation the country has witnessed. The people of Nepal have consistently supported the party, helping it become a strong force in parliament. However, the party is now unable to contest elections on its own. Even in the Bar elections or any election in any sector, why is a coalition necessary? All candidates were respected professionals, so a panel winning or losing would not have made much of a difference.

So why was the alliance necessary?
This coalition culture has deeply affected Nepal—across all sectors, from top to bottom. These tie-ups allow political actors to collaborate in corruption without accountability, as no one is left to question them. This is a deeply troubling situation.

How long will this continue? It has deeply troubled ideologically-driven cadres, and this frustration could eventually impact our political system and even the constitution. The political leadership must address this issue in a timely manner. In the days ahead, all elections—whether federal, provincial, local or those of political organizations and sister wings—should be contested independently. Each party should remain true to its ideology. Politics should not be tainted. No one benefits from such practices.

If the current leadership of these political parties is unwilling to change the status quo, then alternative leaders must step forward. For instance, in the Nepali Congress, Shekhar Koirala should take a stand for change if Sher Bahadur Deuba does not. The same applies to KP Sharma Oli and Pushpa Kamal Dahal in their respective parties. Such shifts in leadership can strengthen party organizations and make the parties more competitive in the days to come.

The author is a member of the Supreme Court Bar and has been practicing corporate law for around three decades