A 22-year-old man was shot dead allegedly by his neighbour in Baitadi following a financial dispute, police said.

According to the Baitadi District Police Office, Karna Bahadur Bista, 45, shot at Surendra Bista of ward 8 in Dogadakedar Rural Municipality-8 on Saturday night.

Surendra, who was critically injured, died while being taken to the district hospital, said Police Inspector Baldev Badu.

The shooting occurred around 8pm on Saturday after a dispute between the two, initial investigations suggest. Karna Bahadur fled the scene, and police have launched a manhunt.

A police team led by Inspectors Badu and Rajendra Saud and Sub-Inspector Ganesh Kadayat has been deployed to the site, said District Police Office, Baitadi.