This paper gives an overview of the state of English Language Teaching (ELT) in Nepal in general and draws a link between ELT and English for Academic Purposes (EAP) and English for Specific Purposes (ESP). The researcher briefly examines the current situation at primary, secondary and tertiary level. The impact of this is assessed from a critical applied-linguistics perspective, to see how the English language has affected the society as a whole, particularly the English-vernacular (Nepali) divide in the country. The study concludes that the ELT situation in the country is far from satisfactory. The factors responsible for this are ineffective teacher education, the medium of instruction, language policies, university entrance examinations and a lack of resources
