Abstract
This paper provides an overview of transport sector in Nepal followed by an analysis of existing state of intercity road transport, challenges being faced and opportunities ahead. Besides 54 airports and a 53-kilometer long narrow-gauge rail line, there exists 20,138km of road. Majorities of the passengers are opting micro-buses as a suitable mode of intercity transport in short route as it is reliable, faster than buses and inexpensive than air services. In case of long route of more than 300km, despite of time consuming and other uncomfortable situations, passengers use buses as of their first priority as it is inexpensive than air; which forms 2nd priority. The major challenges being faced include ineffective implementation strategy, unable to avoid adverse geological situation, weak local institutional capacity, and inadequate budget allocation. Future opportunity lies in the fact that the country has to develop expressways and railways to meet the development challenges
