A shared commitment
to helping the people
and country of Nepal

The cost of living in Nepal has been rising steeply, with many items of food now costing up to 20% more than two years ago. The country relies heavily on imports of food and fuel and the cost of these have been driven up by inflationary pressures worldwide caused by surges in demand after the Covid pandemic and more recently the impact of the war in Ukraine on oil prices. The rising cost of imports from abroad has in turn depleted Nepal’s foreign exchange reserves by more than 16% to mid-February and increased Government debt, with no sign of the pressures easing in the foreseeable future. The government has restricted the import of non-essential goods such as cars, cosmetics and gold and is considering whether to limit consumption of fuel by again restricting the use of cars and commercial vehicles. The situation is exacerbated because many Nepalis lost their jobs during the pandemic, including those working overseas, and remittances from expatriate Nepalis, which constitute almost a quarter of the country’s GDP, have dropped by 5%. Sadly, as in other countries, it is therefore the poorest and most dependent who are feeling the impact of all this.