1. Limited access and low-quality education: The district faces significant challenges in education, including low learning achievement, poor governance, and a shortage of adequately trained teachers and resources.
2. Schools often lack proper infrastructure, trained teachers, and educational resources. Teacher and student absenteeism, low engagement of parents, ineffective school governance are key problems in education which lead to low learning achievement.
3. Inadequate healthcare services and facilities: Access to healthcare services, low levels of awareness, poor WASH practices, lack of medical facilities, poor services, inadequate medical equipment, and poor governance are some of the major issues.
4. Poverty and livelihoods: Limited access to markets, modern farming techniques, and irrigation systems results in low agricultural productivity in Mugu. The district is susceptible to environmental challenges such as landslides, drought, flood and fire which disrupt livelihoods and exacerbate food insecurity.

UMN is implementing programmes aimed at enhancing the access and quality of education and health, with a focus on empowering local communities.