Fifteen-year-old Rohit Kumar was named Man of the Match.
Nepal, however, failed to enter the Super Six after finishing fourth in their group. When Sandeep trapped Aizaz Khan he had his third wicket and Hong Kong were tottering on 110/8, having lost three wickets for four runs in 4.5 overs.
Star spinner Sandeep Lamichanne triggered Hong Kong's middle order collapse after Anshuman Rath nicked behind to wicket keeper Sah.More news: Time Warner Inc (TWX) Position Raised by The Manufacturers Life Insurance Company
Paudel played the anchor role with an impressive 48 not out from 86 balls while Sompal, who earlier took the vital wicket of Hong Kong skipper Babar Hayat, took only 40 balls to make an unbeaten 37.
Nawaz was the pick of the Hong Kong bowlers with 4/47 in his nine overs, while Ehsan Khan and Aizaz chipped in with two wickets each.
Scotland and UAE's success has left Nepal, PNG and Hong Kong in a three-way fight for the last remaining ODI status up for grabs.
Earlier in the match, Nepal kept taking wickets at regular intervals, not allowing any batsmen to settle. The winners of the two classification playoffs - between Netherlands (Group A, 4th spot) and Hong Kong (Group B, 5th spot), and PNG (Group A, 5th spot) and Nepal (Group B, 4th spot) will square-off in the 7th place playoff, while the losers will play in the 9th place playoffs.More news: Win some real golden bananas with new Sea of Thieves treasure hunt
With a 300-plus score looming, Hong Kong did well to pull things back.
Zimbabwe will now take on defending champions Scotland on Monday and the victor of the match will take four points into the Super Six, while the loser will go through with two points.
This comes after Afghanistan cricket chief Shafiq Stanikzai apologised to fans on Thursday after the team's shock defeat by Hong Kong, which left the team's hopes of qualifying for the World Cup hanging by a thread.
West Indies, Ireland, Afghanistan and Zimbabwe are full members, Netherlands have already gained the ODI status are being the champions of ICC WCLD I. For Afghanistan, who had just one victory against Nepal from four matches, it was even simpler: Nepal beat Hong and they are through. The winners will clash for the ultimate seventh spot finish.More news: Bluepoint Games' next project is another remake