Nepal’s latest macroeconomic update shows real signs of recovery and for the country’s young generations, it could be a golden moment to ride a new wave of opportunity. According to the Nepal Rastra Bank (NRB), the economy grew by 4.61 per cent in FY 2024/25, up from 3.67 per cent the previous year. Inflation has cooled to 4.06 per cent, easing cost pressures on households. Sectoral performance is also encouraging: industry grew by 4.53 per cent, services by 4.21 per cent, and agriculture by 3.28 per cent. Exports have picked up, remittance inflows remain strong, and foreign-exchange reserves are also stable.
At a first glance, these numbers suggest that Nepal is regaining stability and regrowth after years of turmoil. Yet behind the macroeconomic recovery, structural vulnerabilities persist. A study by researchers at Tribhuvan University shows that the informal economy still accounts for roughly 38.6 per cent of GDP. Meanwhile, according to labor-market data compiled by Rastriya Shramik Mahasangh Nepal (RSM Nepal), about 84.6 per cent of employment remains informal, and the official unemployment rate stands at 10.71 per cent, with youth unemployment among the young working-age population at a worrying 20.82 per cent.
That means a huge chunk of economic activity and earnings are unregistered, unregulated, and beyond tax or social-security systems. On top of that, a significant majority of workers especially youth either struggle to find good formal jobs or end up in under-paid, unstable work. For Nepal to sustain growth, generate decent jobs, and transform its youthful population into an asset rather than a liability, we need a structural shift and that shift can begin with the youth themselves. For the digitally savvy generation commonly referred to as Gen Z, this is the moment to pivot: to launch Nepal’s gig-economy boom.
Gig economy in Nepal
According to the Asian Productivity Organization’s Productivity Data Book 2025, the gig economy contributes around 7 per cent of Nepal’s GDP. Platforms like ride-sharing (Pathao, InDrive, Yango), delivery (Foodmandu, Daraz, Upaya), freelancing, and outsourcing are expanding.
For example, one platform alone reportedly provides jobs to over 200,000 people (including motorbike riders, cab drivers, and delivery personnel). The gig economy is increasingly accessible to women, students, rural youths, and others who may lack formal qualifications because many gigs require only a smartphone and internet access.
This shift indicates that for many in Gen Z especially those in urban or semi-urban areas or those with digital skills gig work offers a way to earn without depending on formal employers or having to migrate abroad.
The challenges and ways out
Despite its growth and appeal, the gig economy in Nepal suffers from several structural and regulatory problems. A 2024 survey of gig workers found widespread concerns: about legal ambiguity, lack of social security, health risks, income instability, and absence of savings or financial safety nets.
Even if Nepal’s Gen Z is ready to hustle, there’s a difference between side-hustle and sustainable growth. Therefore, the government should legalize gig work as real work, invest in digital infrastructure, and support youth entrepreneurship.
In 2019 AD, the Government of Nepal launched the Digital Nepal Framework with the goal of harnessing economic growth through digital technology and artificial intelligence. Unfortunately, the effective implementation of this framework is hindered by disorganized coordination among the responsible ministries.
But if we act now by empowering tech savvy Gen Z, making strategic policy, drafting legal monitoring and effective complaints handling system, inclusive tax coverage, safeguarding the gig workers’ rights, upgrading infrastructure, ensuring job security, fair remuneration and embracing the gig economy Nepal could unlock a digital dividend. A wave of youth-led digital income, entrepreneurship, foreign-exchange earnings, and formal savings all contributing to a more diversified, modern, and resilient economy.
Nepal’s recent macroeconomic data shows signs of recovery. But numbers alone – GDP growth (4.61 per cent) or low inflation (4.06 per cent) cannot guarantee long-term prosperity. That is just the runway. The real takeoff starts when young generation step into the cockpit: launching freelancing careers, building digital agencies, earning remotely for global clients, and transforming gig work from informal hustle to formal growth engine. For Gen Z, the gig revolution is not just about side income it’s a pathway to reshape the next chapter of Nepal’s economic story.
If Nepal seizes this moment well, the slogan “The Gig Economy and Gen Z” would not just be a catchy tagline. It could become the foundation of the country’s leapfrog growth.
