DOGE slashes Nepal's aid

Elon Musk's Department of Government Efficiency gutted USAID, cutting an estimated $329 million in humanitarian funding to Nepal and eliminating about 30,000 jobs.

Education programs wiped out

The cuts eliminated foundational educational support across all 48 districts, including early grade reading programs and teacher training that had been funded since 1951.

From denial to action

Stuti Basnyet, who led USAID's Nepal office during the shutdown, faced the challenge of rebuilding services without the same funding. She pivoted to the private sector.

“How do you use all of the skills and the experience you've gained in different ways to create an environment where you still felt like you had dignity?”

Nepal's demographic advantage

More than 40% of Nepal's 30 million people are between 16 and 40 years old, creating a youth bulge of talent and labor ready to drive economic growth.

Gen Z led political change

Violent protests by Gen Z demonstrators over social media bans and corruption led to a new government in March, with 36-year-old former rapper Balen Shah as Prime Minister.

Aadyanta Advisory launches

Basnyet co-founded a strategic advisory firm that supported nearly 400 young Nepali innovators and founders in one year, jumpstarting the nation's industrial push.

Silicon Peaks emerges

Kathmandu is becoming a tech hub, with companies like SecurityPal and about a dozen publicly traded U.S. firms establishing major operations in Nepal's capital.

“I wouldn't say Nepal is most people's first choice destination. But I think that that's changing.”

Hydropower fuels growth

Nepal runs on 99% hydropower and has over 100,000 megawatts of untapped potential, with only about 5,000 currently developed, offering massive energy advantages for tech companies.

AmCham Nepal expands fast

The American Chamber of Commerce in Nepal grew from 42 members two years ago to 72 today, signaling growing U.S. business confidence in the country.

IT exports surge

Nepal exported about $1 billion in information technology products in 2025, with the government targeting $20 billion over the next 10 years.

Youth exodus remains urgent

About 1,500 young Nepalis leave the country for foreign work each day, driven by farming jobs that pay 67% less than the national average.

Disaster tests new government

In August, flash floods from a collapsed glacier killed 1,300 and left 5,000 missing, with damages exceeding $2.56 billion, testing the new administration's response.

Private sector steps in

Tech companies including Nvidia donated $10 million to disaster relief, while insurance and telecom firms contributed resources, showing private sector engagement in crisis response.

USAID's absence is noticeable

After the 2015 earthquake, USAID deployed 128 people and eventually provided $64.5 million plus critical hospital and search-and-rescue infrastructure that private companies cannot replicate.

“USAID's absence is noticeable.”

Nepal's path forward

Basnyet argues Nepal must use domestic resources better, mobilize local capital, and engage business and diaspora networks while maintaining global cooperation to build self-sufficiency.

“I don't think the lesson is that Nepal should remain aid-dependent. It should not.”