NEPAL: BASIC FACTS
Geography
Location: South Asia, between China and India.
Area: 147,181 sq km; 145-241 km north-south and 850 km east-west.
Terrain: Flat plains in the south, hills in the middle, and Himalayan mountains in the north.
Climate: Alpine in the north, temperate in the middle and tropical in the south..
Elevation: Highest 8848 metres (Mt. Everest); lowest 70metres (Kechana) in Jhapa.
Natural Resources: Water, quartz, timber, scenic beauty, & deposits of lignite, copper, cobalt, iron ore, etc.
Population
Population: 27 million
Average Life Expectancy: 63.7 years (2007 est.)
Main Ethnic Groups: Chhettri 15.8%, Brahman-Hill 12.7%, Magar 7.1%, Tharu 6.6%, Tamang 5.6%, Newar 5.5%.
Main Religions: Hindu 80.6% and Buddhist 10.7%.
Languages
: Nepali 48.6%, Maithali 12.3%, Bhojpuri 7.5%, Tharu 5.9%, Tamang 5.2%.Literacy
: 54.1%; male: 65.5% and female: 42.89%.Government:
System: Federal democratic republic (from 28 May 2008).
Executive Branch: President, Head of State and Prime Minister, Head of Government
Legislative Branch: A unicameral Constituent Assembly to write a new constitution and make laws in the interim.
Judicial Brach: Supreme Court, the highest court, Appellate Courts and District Courts.
Administrative Divisions: 5 regions, 14 zones and 75 districts.
Legal System: Based on Hindu legal concepts and English common law.
Economy:
GDP Per Capita: US$470 (2007/08)
GDP Composition: agriculture 32% and 68% other sectors.
Gross Domestic Savings: 11.47% of GDP (2006/07)
Gross National Savings: 32% of GDP
Export of Goods and Services: 12.04% of GDP
Import of Goods and Services: 32.56 of GDP
Labour Force by Occupation: agriculture 76%, industry 6%, and services 18%.
Main Industries: Tourism, beer, noodles, carpet, textile; small rice, jute, sugar, and oilseed mills; cigarette; cement and brick production, jewellery.
Main Agricultural Products: Rice, corn, wheat, jute, sugarcane, tea, oilseeds, root crops; dairy products, etc.
Main Exports: Carpets, garments, leather goods, jewellery, handicrafts, etc.
Export Partners: India 54.4%, US 16.8%, Germany 7% (2005).
Main Imports: Gold, machinery and equipment, petroleum products, fertilizer, etc.
Import Partners: India 48.4%, China 10.7%, UAE 10.2%, Saudi Arabia 4.5% etc. (2005).
Currency and Exchange Rate: Nepali Rupee (NPR); 1 US$ = 68.55 NPR.
Air Services: One international and 44 domestic airports; more than 20 airlines fly into and out of Kathmandu’s international airport.
Roads: More than 17,433 km (2005/6); higher coverage in the plains, Kathmandu valley, the capital, and the Pokhara valley.
Telecommunications: Nearly 600,000 landlines; increasing coverage of mobile phones.
Biodiversity
: More than 500 species of animals, 850 species of birds, 450 species of butterflies, and several thousand species of plants; presence of such rare animals and exotic birds.NEPAL: A PARADISE FOR FOREIGN INVESTORS
Why invest in Nepal
Attractive Investment Features
Repatriation of foreign exchange allowed
Easy availability of foreign exchange
Low tax and duty rates
Fixed royalty payments
Concessionary import policy for investors
Special concessions for LDCs under WTO and SAFTA, the regional trade arrangement
Member of the Multilateral Investment Guarantee Agency
Increasing urbanization and growing middle class with purchasing power in the country
Location between India and China, two giants growing at a breakneck speed
Known but little tapped prospects to become a transit county between its two neighbors
100% foreign ownership of project allowed
High export potential in the region and beyond
Guarantee against nationalization of businesses
Competitive wages
One-window policy for quick dispensation of facilities
Second largest hydropower potential after Brazil in an energy hungry region
Dispute resolution as per agreement allowed
Impartial judicial system
Transparent legal & regulatory framework
Repatriation of Foreign Exchange
Principal and interest on debt
Profit from equity
Sales of share equity
Incentives to Export Industry
Customs duty, sales tax, excise duty and premiums levied on raw materials and auxiliary raw materials etc utilized by any industry in connection with its production reimbursed on the basis of the quantity of export.
No tax, fee or charge of any kind levied on the machine, tool, equipment, machinery and raw materials to be employed by an export promotion industry as well as on the products of such industry.
No royalty shall be imposed if any industry generates electricity for its use
Other Facilities and Concessions
Foreign investment eligible for all the fiscal incentives available to domestic investment.
Foreign investment in firms located in Export Processing Zones (EPZ) and 100% export oriented firms eligible for duty free access to machinery and raw materials and for tax holiday for at least seven years.
Areas of Opportunity: Manufacturing
Pharmaceuticals
Electric / electronic gadgets
Components making
Precision equipment
Textile and clothing
Area of Opportunity: Infrastructure Development
Power / Road / Airport / Bridges / Tunnels / Telecommunication, Real Estate, Housing etc.
BOOT / BOT principle accepted
First comers can themselves be part of the rules framing process
Area of opportunity: Information Technology
No handicap of land locked-ness and high transport cost
Many graduates of the field
Fairly good command of English
Nepali people are easily trainable
Nepal could be a very good location for data entry and processing
Area of Opportunity: Services
Tourism
Holiday homes
Sanatoriums
Hospitals / Nursing Homes
Educational / Training Institutions
Financial Services / Off Shore Banking
Hydropower Potentials of Nepal
Theoretical hydropower potential: 83000 MW
Techno-Economically feasible: 44000 MW
No. of feasible sites : 66
Growing demand for domestic consumption
Export to meet the requirements of neighbours
Major Planned and Proposed Projects of Nepal
Karnali Chicapani 10800 MW
West Seti 750 MW
Upper Karnali 300 MW
Arun III 402 MW
Pancheshower 6480 MW
Upper Tama Koshi 250 MW
Budhi Gandaki 600 MW
Other Major Hydropower Projects
Khimti Khola - 2 (27 MW)
Lower Arun (308 MW)
Kali Gandaki - 2 (660 MW)
Burhi Gandaki (600 MW)
Tila River (203 MW)
Naumure (245 MW)
Tama Koshi - 3 (287 MW)
Upper Trishuli (300MW)
Mai Loop (60 MW)
Tama Koshi - 2 (207 MW)
Upper Marshland - 3 (121 MW)
Some Hydropower Projects Identified for Development
Chameliya (30 MW)
Budhi Ganga (20 MW)
Kabeli - A (30 MW)
Arun - 3 (402 MW)
Kankai (60 MW)
Likhu - 4 (51 MW)
Dudh Koshi - 1 (300 MW)
Tamur - Mewa (101MW)
Rahughat Khola (27 MW)
Andhi Khola (176 MW)
Upper Arun (335 MW)
National Priority Industries
Integrated sericulture and silk production
Horticulture and related processing
Animal husbandry
Dairy industry
Poultry farming
Fishery
Tea / coffee plantation & processing
Mushroom production / processing
Herbs culture and processing
Vegetable seeds
Bee-keeping and honey
Floriculture
Agro forestry
Green-house / tissue culture production
Cold Storage
TRADE
Main Exports of Nepal
Beautiful and durable hand-knotted carpets
Readymade garments
Exotic handicrafts, jewellery and precious and semi-precious stones
Pashminas and woolen clothes
Leather goods
Cardamoms and other spices
Paper and paper products
Lentils
Tea and coffee
Fruits and flowers
Medicinal herbs,
Exported Rs.59 billion worth of goods and services (2006/07).
Main Imports
Machinery and equipment
Vehicles
Petroleum products,
Chemicals
Metals
Electric and electronic goods
Textiles
Food products
Imported goods and services of Rs.197.7 billion (2006/07)
Basic Policy
Improve balance of payment position
Promote and diversify in commodities and countries
Encourage interface between trade and industry
Help modernize management and technology Improve access to market
Attract foreign direct investment to develop new products
Privatization of public enterprises
Liberal tax and foreign exchange regimes
Simplified administrative procedures
Export Policy
Increase and diversify exports
Improve quality of traditional products
Develop new products
Identify new markets
Emphasize on exporting finished products
Promote service-oriented activities
Free exports from licenses
Improve transit regime
Free exports from all duties
Establish export promotion zones
Full convertibility of Nepali rupees in trade and services
Export of hydropower
Develop and utilize skilled human resources
Create favorable monetary, foreign exchange and fiscal regimes
Exempt exports from income tax
Simplify export procedures
Treat supply to foreign-aided projects as exports
Import Policy
Create competitive industrial and trade environment
Ease the supply of materials required for the country
Replace quantitative restrictions with fiscal measures
Tie up imports with exports
Replace quantitative restrictions by tariff arrangements
Remove licensing requirements for imports
Simplify import procedures
Liberalize foreign exchange regime for imports
Reduce transit costs
Make imports free and competitive other than restricted items
Make Nepali currency freely convertible for imports
TOURISM
Nepal: Land of Legends
Land of the majestic Himalayas
Land of Mt. Everest
Birthplace of Lord Buddha
Birthplace of Janaki (Sita), wife of Lord Rama
Land of the Gurkhas
Land of the Sherpas
Land of amazing bio-diversity
Bed of 100 cultures and languages
Land of friendly people and smiling faces
Land of open museums with thousands of cultural and architectural monuments
Heaven for Nature Lovers
Diverse terrain – mountains, hills, and plains
Highest point Mt. Everest (8848 meters) and Lowest Point Kechana Kalan (70 meters)
8 out of 14 tallest peaks in the world
Green paddy terraces, wind-swept deserts, dense forests and marshy grasslands
Perennial rivers, lakes and glacial lakes
Three main climates – Alpine, temperate and tropical depending on elevations
Home to 500 species of animals including tigers, rhinos, bears, yaks, leopards
Home to 850 birds including many rare ones
Land of 450 species of butterflies
Country with the second highest hydropower potential in the world
Country for all seasons
Exotic Animals
Asiatic Elephant
One-horned Rhinoceros
Wild water buffalo
Tiger
Panther
Snow leopard
Sloth bear
Lesser panda
Spotted deer
Barking deer
Musk deer
Swamp deer
Black buck
Blue Bull Antelope or Nilgai
Wild dog
Golden jackal
Striped hyena
Wild boar
Equally Exotic Birds
Kathmandu valley has the Laughing Thrush, Crested Serpent Eagle, Little Pied Fly Catchers, Ruby - Throats, Babbler, Egret, Heron, Kingfisher, Ibisbill, Wood Sandpipers, Red-headed Trogan, Cutia, Mountain Hawk Eagle, Rufous Bellied Pied Woodpecker, Black-throated Parrot bill, Spring Babbler, Pheasant, Magpie, Sunbirds and Plover, to name a few
Koshi Barrage and Koshi Tappu have Waterfowl, Waders and 26 varieties of ducks as well as over 450 species other birds including Black Ibis, Honey Kite, Osprey, Black Headed Oriole, Peregrine Falcon, Partridge, and Stork.
Pokhara Egret, Herons, Pipits, Buntings, Gull, Tern, Duck, Falcon. Pheasant-tailed Jacana, Happie Grey Bellied Tesia, and Bulbul.
Bardia National Park has Ruddy Shellduck, Oriental Pied Hornbill, Night Heron and Purple Herons, plus many more
Jerdon's Baza was sighted recently in Nepal
Sarus Crane, one of the world's most endangered and tallest flying birds
Amazing Variety of Butterflies
Nepal has 11 out of the 15 families of butterflies recorded in the world, or over 500 species
Between 1974 to 1981, 24 specimens or sub-families of butterflies were discovered
In 1981, two species -- the BLUE DUCHESS and the SIKKIM HAIRSTREAK -- were found
In 1986 an entirely new race of the CHINESE HAIRSTREAK turned up
About 10% of the butterflies belong to the Palaearctic species in Nepal
Other 90% belong to other Oriental species
About 20 of the species found in the Kathmandu Valley are on the endangered or vulnerable list.
Incredible Species of Flora
More than 200 new species found since 1951
Godavari herbarium has over 60,000 specimens of vascular plants
3121 species of Angrosperms, 24 species of Gymnosperms and 308 species of Pteridophytes, 1,242 species of genera and 210 families of plants found by the 1970s
All zones of Nepal -- Tropical, Sub-tropical, Temperate, Upper temperate, Sub-alpine, and Alpine – have distinct variety of trees with enormous diversity.
30 species of indigenous Rhododendrons found in Nepal and R. lowndesit is found only in Nepal.
Healing Medicinal Plants
Thousands of species of herbs and medicinal plants
1,400 kinds of medicinal plants used by Ayurvedic doctors and traditional healers in Nepal
All five zones – Alpine, Sub-alpine, Temperate, Sub-tropical and Tropical – are rich in rare plants of high medicinal values.
Beautiful Orchids
Nepal has 57 genera (27 Terrestrials and 30 Epiphytic) with a few Lithophytes, among 500 genera
Godavari has orchids with greenish fragrant flowers, Shivapuri and Kakani with white or pale yellow flowers
Sundarijal basks in green orchids streaked with purple
Daman has pale mauve orchids
Dhankuta and Hetauda have sporting yellow flowers
Khandbari has purple-brown with pale borders
Nepal has some of these species: Dedrobium, Habenaria, Bulbophyllum. Anthogonium, Hemipilia
and Lusia amongst the nearly two-dozen single species families.
Trees
A country of most diversity in trees, thousands of species of trees found
Trees found everywhere in Nepal up to 5000 metres
Himalayan Cypress in indigenous to west Nepal and Cedar and Deodar throughout Nepal
The Annapurna Conservation Area, Kanchanjungha Conservation Area, Khaptad National Park, Langtang National Park, Makalu-Barun Conservation Area, Rara National Park, and Shey-Phoksund National Park, all have distinctive sets of rare and exotic trees from various climatic zones.
Ethnic Distribution
The Northern Himalayan People: Tibetan-speaking groups namely Sherpas, Dolpas, Lopas, Baragaonlis, Manangis; the highest settlements on earth at 4,000 meters in Nepal
The Middle Hills and Valley People: Magars, Gurungs, Tamangs, Sunuwars, Newars, Thakalis, Chepangs, Brahmans and Chhetris as well as such occupational castes as Damais (tailors), Sarki (cobblers), Kamis (blacksmiths) and Sunars (goldsmiths)
Kathmandu Valley: Newars, the natives, and various other groups
The Terai People: Tharus, Darai, Kumhal, Majhi, Rajbansi, Brahmin, Rajput, Yadav and others as well as some occupational castes like Majhis (fishermen), Kumhals (potters) and Danuwars (cart drivers).
Mountaineering
Nepal’s Himalayas known as the world’s rooftop
8 of the highest 14 peaks in the world, including the tallest Mt. Everest
Some 326 majestic summits open for mountaineering
1310 magnificent peaks over 6,000 metres
The Himalayan range is 2500 km long, is 300 km wide, and rises 9 km above the sea level
Climbing permits issued in all seasons by the Tourism Ministry
Around 121 peaks do not require liaison officer for expedition
Climbing gears and equipment can be bought or rented in Kathmandu
The Himalayas began to form around 70 and 80 million years ago out of the Tethys sea, and are still rising, as the tectonic plates of the Indian sub-continent and the Eurasian continent collide
Trekking
The Mt. Everest Region: The most popular route lead to the Everest Base Camp and to the Makalu-Barun Park
See several peaks of more than 8,000 meters, glacial lakes, rhododendron forests, native flora and fauna, traditional villages and ancient Buddhist monasteries
No special trekking permits needed provided that the trekker's do not climb any peaks
The Annapurna Region: The most popular route after the Everest region.
Deepest gorge on earth between Annapurna I and Dhaulagiri, both 8000 meters
Undisturbed natural forests, unusually diverse landscapes and a mixture of different ethnic inhabitants
The Langtang Region
Trekking through traditional, ethnic villages and untouched forests to the peak, Langtang-Lirung
One may climb the Lang Sisa Peak and visit Lake Gosaikunda
Visit the Langtang valley, Kyangin Gomp, the Lirung Glacier, Trishuli Bajaar, Dhunche and Syabrubesi
Rafting
Nepal -- best destinations for white water rafting due to its rapid rivers
Grade 5-5+ rivers with raging white water rapids for the adventurous
Grade 2-3 rivers with a few rapids for novices
Rafters have a choice of 2-3 week to 2-3 day trips
Exciting opportunities for paddling, oaring and kayaking
Other Adventures
Enjoy bungee jumping from the 160 meter high bridge of the Bhote Koshi river – Jumping beyond imagination
Paraglide through the unparalleled scenic grandeur sharing airspace with Himalayan griffin vultures, eagles, and kites, floating over villages, monasteries, temples, lakes and jungles, & enjoying the fantastic view of the Himalayas
Fly into ecstasy by taking mountain flights and coasting along the Himalayan mountain range, including Mt. Everest
Fly by ultra light aircraft for 15, 30 or 60 minutes PoKhara, Phewa Lake, and close to the Fish Tail peak
Take the cable car and go to the Manakamana temple overlooking the hills and valleys with exotic villages
Enjoy boating in Phewa, Rupa and Begnas Lakes in Pokhara or in many rivers of Nepal
Go fishing to rivers, streams and lakes for 118 varieties of fresh water fish, including the legendary Mahasheer
Shopping
Hand-knotted carpets
Exotic woodworks
Incredible decorative metal works
Gems and gold and silver jewellery
Hand-woven fabric
Extraordinarily beautiful Pashmina products
Aromatic tea and titillating spices
Mystifying thangkas and Paubhas
Everlasting Nepali paper and paper products
Mithila arts
Bamboo baskets and Straw products
Festivals
Lively festivals year round
Religious
Historical
Agricultural
Seasonal
Legendary
Other Things to Enjoy
Try your luck in six lively casinos of Kathmandu
Enjoy the fabulous golf course by the Kathmandu airport and play in scenic Gokarna amidst wild deer
Devour what many discotheques, bars and pubs have to offer
Relish Nepali cuisine while watching flawless Nepali dances and listening to the soothing Nepali music
Enjoy dishes from more than 100 countries in Kathmandu
Entry into Nepal
Tourists who visit Nepal must hold a valid passport and visa
Visa can be obtained at Nepal Embassy/ Consulate or Mission abroad or on arrival at Tribhuvan International Airport, Kakarvitta, Birganj, Kodari, Belhiya, Jamuna, Mohana, and Gaddachauki.
Multiple Entry Tourist Visa Fees -- 15 days US$25 (or equivalent) Entry 30 days US$30; 90 days US$100
Visa is free for 30 days to tourists from SAARC countries
Transit Visa: Can be obtained at Tribhuvan International Airport in Nepal, by paying US $ 5 or equivalent
Getting There
By air: Fly to Kathmandu from London, Paris, Frankfurt, Vienna, Amsterdam, Doha, Dubai, Dhaka, Karachi, Munich, Abu Dhabi, Bahrain, Paro, Lhasa, Singapore, Kuala Lumpur, Bangalore, New Delhi, Mumbai, Patna, Calcutta and Varanasi. Several airlines fly in and out of Kathmandu, including Nepal Airlines, Thai Airways, Qatar Airways, Indian Airlines, Pakistan International Airlines, Biman Bangladesh, Gulf Air, Indian Airlines, Air Sahara, Jet Airways, Austrian Air, Martinair, Air China, Druk Air.
By Road: Enter Nepal through Kakarbhitta, Birgunj, Belhiya (Bhairahawa), Nepalgunj, Dhangadi, Mahendra Nagar on the Nepal-India border and Kodari on Nepal-China border.
Accommodation
Several 3, 4 and 5-star hotels in Kathmandu and Pokhara
International standard lodges in Chitwan and other national parks
Budget hotels for tourists with limited means
Tourist lodges on various trekking routes
Getting Around
Domestic air services take you to 44 destinations
Charter flights could also be arranged
Tourist buses between tourist destinations
Limousines
Regular city bus services
Mini-bus services
Metered taxis
Point-to-point tempos
Hired mountain or ordinary bikes
Long distance buses linking major cities and towns