The recent Gen Z-led political uprising has given Nepal a unique moment to pause and reflect on its development journey. In a political era, driven largely by political rhetoric and divisive arguments of ‘new’ versus the ‘old’, the key question of this election should be: Can leaders accelerate the country’s development progress already made so far, or will they reinvent the wheel all over again?

In less than seven decades, the country has witnessed three major revolutions, but tangible gains have been limited. After years of efforts across health, education and infrastructure, Nepal is finally set to receive the developing country status alongside Bangladesh and Lao PDR in November 2026. In a political environment marked by frequent government changes, this will not just be an achievement of a single party but the result of sustained efforts over decades.

When Nepal promulgated its new constitution in 2015, it also began adopting the newly developed Sustainable Development Goals alongside 193 other countries under the United Nations. The SDGs are an extension of the Millennium Development Goals, which provide a credible and integrated framework guiding national development. The government of Nepal has published the SDGs roadmap of 2016–2030 and also embedded them into key documents such as the 16th Periodic Plan, translating long-term aspirations into specific, actionable steps. However, considerable effort is still required on the implementation side, as the current progress stands at only around 41 percent.

An uneven transition

The journey of the LDC graduation has not been easy for Nepal. As per a United Nations report, a critical imbalance remains. While the Human Assets Index is 76.3, surpassing the graduation benchmark, the Gross National Income and Economic and Environmental Vulnerability Index (EVI) remain below the required thresholds. In an economy largely dependent on remittances, short-term progress may reflect resilience, yet a single external shock, such as the Covid-19 pandemic, could expose deeper structural flaws.

The progress that Nepal has achieved so far presents a mixed picture. Although the primary enrolment has now reached 97 percent, many students still do not have the right skills required for the country and move abroad in search for decent paying jobs. The health sector shares a similar story, where the current child mortality rate stands at 17 deaths per 1,000 live births. Furthermore, the maternal mortality ratio has declined by 71 percent since 2000, marking a significant public health achievement. However, access to health facilities remains uneven.

Inclusion has the same pattern of disconnect. Despite constitutional guarantees of one-third representation for women, parties have fallen far short in practice. In the coming election, only 11.34 percent of first-past-the-post candidates are women, well below the 33 percent as instructed by the constitutional poll management body. This raises concerns about commitment to gender equality and inclusion in leadership. Such gaps are visible in geography as well. Madhesh Province, despite contributing over 13.1 percent to the national economy, has a per capita income of only $892 compared to $2,485 of Bagmati Province as per the National Statistics Office. The country cannot sustain long-term socio-economic stability without addressing these disparities.

Nepal’s comparative advantage

Nepal’s economy has long relied on natural resources. The energy sector is the front-runner, boosted largely by hydropower. The total installed capacity has reached nearly 3900 MW, and electricity is now universal. This was backed by the government’s favourable power purchase agreements and significant private sector investments. In 2025, electricity exports to India and Bangladesh generated over Rs18.3 billion. On the demand side, electric vehicles now comprise over 76 percent, placing Nepal ahead globally in the clean-energy adoption. Yet, the per capita electricity consumption is far below the global average, and during the dry season, Nepal is heavily dependent on imports.

The positive spillovers in the energy sector have not translated into enough new capital formation or quality jobs at home. With reliable power, connectivity and the right skills, many young Nepalis could tap into remote work and IT-enabled services. Recently, the government has opened the door for IT companies to invest abroad and is targeting to achieve Rs3 trillion over the next 10 years. Tourism is another sector. If reimagined from the lens of sustainability, it can significantly boost the country’s economy.

Bhutan, committing to environmental stewardship, has attracted high-value tourists. Lessons can also be learned from the neighbours. In the past four decades, China lifted over 800 million people out of poverty. It became the first country to achieve the Millennium Development Goals by focusing on domestic production, leveraging its labour advantage and gradually shifting towards innovation. Meanwhile, India, through favourable investment-friendly policies, has advanced in digitalisation by building large IT hubs such as Hyderabad’s HITEC City alongside digital public infrastructure that has expanded markets at scale. These examples show that with sustained public investment in human capital, infrastructure and inclusive markets, development gains can be retained over time. While Nepal does not need to replicate any of these models, it must focus on action driven by its core competitive strengths.

Choice before us

The March election should be the defining moment for Nepal to move beyond populist promises and focus on real delivery. Rather than restarting everything from scratch, lessons should be learned from the progress already made towards LDC graduation. More than Rs32 billion has already been allocated to this election alone. If the election is only about who sits in Singha Durbar with no tangible outcomes, then the nation will always risk being trapped in the same paradox where ‘new’ or ‘old’ makes little difference. Leaders and the public should agree on non-partisan policies grounded in Nepal’s sustainable development agenda that safeguard the interests of all generations.