- Poor Maintenance: The technology used in railways is old and outdated. Spare parts are not available. The maintenance has been very poor. Safety is poor. Railway lines need rehabilitation.
- Disruptions: Frequent breakdowns and natural calamities from floods and landslides disrupt railway services. This has made the service unreliable.
- High Cost: Compared to road transport, railways costs are high in Nepal.
- Poor Sustainability: Lack of alternative road transport is responsible for sustainability of railways. Future sustainability is questionable. Financial performance of railways is also poor.
Nepal and India negotiations are going on for the development of a railway network in Nepal. China has plans to connect its Tibet region with Nepal through railways.
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