At senior level, yes - Nepal have very little in the way of senior domestic structures, which is probably a large part of why their U19s never go on to better things. At this level, though, they've always been very competitive. For a little bit of historical perspective, here's the result from when the two sides met during the group stage of the 2006 competition (remember, this is the Sean Williams-led side, acknowledged to be much stronger than this year's side):brmtaylor.com admin wrote: anything other than a total annihilation of Nepal is less than acceptable IMO.
Zimbabwe 201 (49.5 ovrs), Nepal 199/5 (50 ovrs). Zimbabwe U19 win by 2 runs.
In the past they've beaten Bangladesh, Kenya, New Zealand, Pakistan, and South Africa (twice). Against Full Member nations they've played 14, won 5 - which for a lowly associate isn't bad at all. I wouldn't underestimate them...
(Their 2002 meeting may be more what you're expecting, and includes a few familiar names.)