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This paper critically analyses key educational policy documents produced by the World Bank mainly from the mid-1980s to 2010 with regard to implementing major educational projects in Nepal. Using critical policy sociology as a methodological tool, the paper explores how a small Himalayan nation with per capita income of about US$730 (2014) plunged into neoliberal world order during the early 1980s. The paper argues that Bank’s educational policy recommendations are guided by some underlying assumptions of neoliberalism mainly marketisation, privatisation, and decentralisation. The paper concludes that neoliberal orientation in education has almost no potential in addressing Nepal’s development challenges. [ABSTRACT FROM AUTHOR]