In recent years, the idea of a circular economy has gained popularity in Nepal due to its potential to foster both economic growth and environmental sustainability. An alternative economic model known as the "circular economy" encourages the more effective and sustainable sharing, repairing, and reuse of resources. The tenet that natural resources are limited and should be used sparingly underpins the circular economy concept. The circular economy is growing more and more significant in Nepal as the nation struggles with issues including population expansion, resource shortages, and environmental deterioration.

Nepal has already started moving in the direction of a circular economy. The National Circular Economy Strategy, the National Waste Management Strategy, and the National Zero Waste Strategy are just a few of the policies and programs the government has put into place to further the idea of the circular economy. These tactics encourage resource efficiency, reuse, and recycling while reducing the usage of new materials. Additionally, the government has started a number of initiatives to advance the concepts of the circular economy, including the Karnali Waste Management Program, the Simrik Recycling and Resource Recovery Facility, and the Integrated Resource Recovery Facility.

There are a few additional ways South Asia might gain from the implementation of circular economy ideas in addition to these initiatives. First of all, it might contribute to lessening the area's dependency on imported resources, which would lessen its negative environmental effects.