SAARC Countries...

Nepal

Nepal the country of many surprises
Nepal Nepal – official nomenclature Federal Democratic Republic of Nepal is a landlocked country in South Asia. It is bordered to the north by China and to the south, east, and west by India. With an area of 147,181 square kilometres and a population of approximately 30 million, Nepal is the world's 93rd largest country by land mass and the 41st most populous country. Kathmandu is the nation's capital and the country's largest metropolitan city.

Nepal is marked by highly diverse and rich geography, culture, and religions. Its northern regions are mountainous, containing eight of the world's ten highest mountains, including the highest, Mount Everest, while the south is more fertile and urbanised. Hinduism is the religion of a great majority of people in Nepal, with Buddhism, a minority faith also present, linked historically with Nepal as the birthplace of Siddhartha Gautama who, as the Buddha, gave birth to the Buddhist faith and tradition. Nepal has been a monarchy throughout most of its history. Prithvi Narayan Shah, a Shah dynasty king, was instrumental in unifying many small kingdoms in 1768. Since then, the country had been ruled by kingly dynasties, but a decade-long upheaval by the Communist Party of Nepal, along with several weeks of mass protests by all major political parties of Nepal in 2006, culminated in a peace accord and the ensuing elections for the constituent assembly voted overwhelmingly in favour of the abdication of the last Nepali monarch Gyanendra Shah and the establishment of a federal democratic republic in May 28, 2008. The first President of Nepal, Dr. Ram Baran Yadav was sworn in on 23 July, 2008. 

Nepal – Economy Nepal's gross domestic product (GDP) for the year 2005 was estimated at a little over US$39 billion (adjusted to Purchasing Power Parity), making it the 83rd-largest economy in the world. Agriculture accounts for about 40% of Nepal's GDP, services comprise 41% and industry 22%. Agricultural produce — mostly grown in the Terai region bordering India — includes tea, rice, corn, wheat, sugarcane, root crops, milk and water buffalo meat. Industry mainly involves the processing of agricultural produce, including jute, sugarcane, tobacco, and grain. Nepal has an approximate workforce of about 10 million but suffers from a severe shortage of skilled labour. 

Nepal's exports consist of mainly carpets, clothing, leather goods, jute goods and grain total, about $822 million per annum. It imports mainly gold, machinery and equipment, petroleum products and fertilizer of approximately US$2 billion per annum. India (53.7%), the US (17.4%), and Germany (7.1%) are its main export partners. Nepal's import partners include India (47.5%), the United Arab Emirates (11.2%), China (10.7%), Saudi Arabia (4.9%), and Singapore (4%). Many Nepali citizens live and work in India; the Gulf countries and Malaysia being new sources of work. Nepal receives US$50 million a year through the Gurkha soldiers who serve in the Indian and British armies and are highly esteemed for their skill and bravery. Distribution of wealth among Nepalis is consistent with that in many developed and developing countries: the highest 10% of households control 39.1% of the national wealth and the lowest 10% control only 2.6%. Though landlocked, Nepal’s aviation is in a relatively satisfactory shape, with 48 airports, ten of them with paved runways; flights are frequent and support a sizable traffic. Landline telephone services are not adequate nationwide, but are concentrated in cities and district headquarters. Mobile telephony is in a reasonable state in most parts of the country with increased accessibility and affordability; there were around 175,000 Internet connections in 2005. 

Demography Perched on the southern slopes of the Himalayas, Nepal is as ethnically diverse as its terrain of fertile plains, broad valleys, and the highest mountain peaks in the world. The Nepalese are descendants of three major migrations from India, Tibet, and North Burma and Yunnan via Assam. The country’s mountainous highlands are sparsely populated. Kathmandu Valley, in the middle hill region, constitutes a small fraction of the nation's area but is the most densely populated, with almost 5% of the population. Nepal is a multilingual, multi-religious and multiethnic society. Religion The overwhelming majority in Nepal are adherents of Hindusim, with God Shiva being regarded as the guardian deity of the country. Nepal is home to the largest Shiva temple in the world, the famous Pashupatinath Temple, where Hindus from all over the world come for pilgrimage. According to mythology, Sita, consort of Rama, was born in the Mithila kingdom of King Janaka. Bordering India is Lumbini, a Buddhist pilgrimage site in the Kapilvastu district, the birthplace of Gautam Buddha (born 563 BC) a Kshatriya prince of the Sakya clan, who, as Buddha the Enlightened, gave birth to the Buddhist faith and tradition.The holy site of Lumbini is bordered by a large monastic zone, in which only monasteries can be built. 

Culture Nepalese culture is diverse, reflecting different ethnic origins of the people. People celebrate many festivals, well known for their music and dance. A typical Nepalese meal is dal-bhat-tarkari. Dal is a spicy lentil soup, served over bhat(boiled rice), served with tarkari (curried vegetables) together with achar (pickles) or chutni(spicy condiment made from fresh ingredients). Nepal’s Newar community has its own unique cuisine consisting of non-vegetarian as well as vegetarian items served with alcoholic and non-alcoholic beverages. Mustard oil is the cooking medium and a host of spices, such as cumin, coriander, black peppers, sesame seeds, turmeric, garlic, ginger, methi (fenugreek), bay leaves, cloves, cinnamon, pepper, chillies, mustard seeds, etc., are used in the cooking. The cuisine served on festivals is generally the best. Orchestras consist mainly of percussion instruments, though wind instruments, such as flutes and other similar instruments, are also used. There are songs pertaining to particular seasons and festivals. There are certain musical instruments such as Dhimay and Bhusya, which are played as instrumental only and are not accompanied with songs. In the hills, people enjoy their own kind of music, playing saarangi (a string instrument), madal and flute. They also have many popular folk songs known as lok geet and lok dohari. Dances can be broadly classified into masked dances and non-masked dances. Folklore is an integral part of Nepalese society. Traditional stories are rooted in the reality of day-to-day life, tales of love, affection and battles as well as demons and ghosts and thus reflect local lifestyles, cultures and beliefs. Many Nepalese folktales are enacted through the medium of dance and music. 
The Nepali year begins in mid-April and is divided into 12 months. Saturday is the official weekly holiday. Main annual holidays include the National Day, celebrated on the birthday of the king (December 28), Prithvi Jayanti (January 11), Martyr's Day (February 18), and a mix of Hindu and Buddhist festivals such as dashain in autumn, and tihar in late autumn. During tihar, the New Year as per their local calendar is celebrated as Nepal Sambat. 

Nepal’s flag is the only national flag in the world that is non-quadrilateral in shape, and one of only two non-rectangular flags in use (the other being the flag of the US state of Ohio). According to its official description, the red in the flag stands for victory in war or courage, and is also colour of the rhododendron, the national flower of Nepal. Red also stands for aggression. The flag's blue border signifies peace. The curved moon on the flag is a symbol of the peaceful and calm nature of Nepalese, while the sun represents the aggressiveness of Nepalese warriors.

Nepal Business : Explore the potential
Industry in Nepal Until the 1980s, modern industry was almost nonexistent; only0.66% of Nepal's GDP was derived from industry in 1964/65. Since then, industrial development has been given emphasis in economic planning. Manufacturing as a percent of total GDP at current factor cost rose from 4.2% in 1980 to 6.1% in 1990 to9.2% in 1995 to an estimated 22% in 2000. However, manufacturing is a sector that has been hit particularly hard by the Maoist insurgency and the intensification of violence since 2001. Global estimates were that the industrial production growth rate for 1999/2000 was 8.7%. However, this had dropped to less than 1% for 2001/02 according to IMF estimates.

Major industries in Nepal include tourism, carpets, textiles, small rice jute, sugar, and oilseed mills; cigarettes, cement and brick factories. Aside from small-scale food processing (rice, wheat and oil mills), light industry, largely concentrated in southeastern Nepal, includes the production of jute goods, refined sugar, cigarettes, matches, spun cotton and synthetic fabrics, wool, footwear, tanned leather, and tea. The carpet, garment and spinning industries are the three largest industrial employers, followed by structural clay products, sugar and jute processing. Heavy industry includes a steel-rolling mill, established in 1965, which uses imported materials to produce stainless steel. During the 1980s, the government gave priority to industries such as lumber, plywood, paper, cement, and bricks and tiles, which make use of domestic raw materials and reduce the need for imports. 

Nepal and Foreign Investment With expectations to supplement domestic private investment through foreign capital flows, transfer of technology, enhancement in management skills and productivity and to get into the global market, Nepal has opened its door for foreign investment by adopting the most liberal economic policies. The Government of Nepal has also created a competitive and investment-friendly environment by making the administrative procedures simple and easy and also providing attractive incentives and facilities to the foreign investors making Nepal one of the safest and suitable business destinations in the world. Nepali laws also assure the security of investments against nationalization. Nepal is also a member of Multilateral Investment Guarantee Agency (MIGA) and assures foreign investors against non-commercial risks like currency transfer, breach of contract, war and civil disturbances in the country.
Foreign direct investment projects in Nepal, worth approximately over US$ 1.65 billion, are in the sectors of agriculture/forestry; manufacturing; energy; construction; mineral; tourism and other service-related industries. These have generated employment opportunities to almost 95,000 people in Nepal. India, the US, China, the UK, Norway, Japan, South Korea and Germany are the leading countries with highest number of projects in Nepal. Almost every sector in Nepal is open for investment like manufacturing, energy, tourism, mining, agro based industries, excepting cottage, arm and ammunition industries; explosives and atomic energy; real estate; poultry and fisheries; and some other sensitive industries directly relating to public health, environment and defence. 
Some incentives and facilities accorded by the Government to foreign investors: No income tax on (a) dividends (b) export earning (c) interest earned on foreign loan. d) 15% of income tax on income earned as technical fees as well as royalty. e) exemption of tax, duty and fee on the products, machinery, equipment, tools and raw materials used by an export industry. f) capitalization of pre-operating expenses incurred for skill development and training. g) an additional of 10 % rebate on income tax to any industry providing direct employment to 600 or more Nepalese citizens. h) no royalty on captive power generation for the industry's own use and no double sales tax on the raw materials and products. Apart from all these, a foreign investor can employ an expert or technical personnel in the foreign investment project from his/her particular country upon the permission of the Labour Department and these experts can remit up to 75% of their income in convertible currency. 

Scope for Foreign Investments in Hydro Power Nepal has a huge potential of hydro power that comes to about 83,000 MW out of which 43,000 MW is economically viable. Until now, Nepal has not been able to exploit much of its potentiality and the people in Nepal still face severe power shortages. In order to harness and develop hydropower, private sectors were involved to carry out small and medium sized hydro power projects. Similarly the government is encouraging private foreign investment in this sector. A number of projects for feasibility studies and development has also been recognized which are as follows: Hydro Projects Identified for feasibility study 

Khimti Khola - 2 (27 MW) Lower Arum (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) Hydro Power 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) 

Scope for foreign investment in other areas/sectors
Tourism also avails high scope for foreign investment opportunities. As of the July 2004 statistics of Department of Industry, there are about 218 foreign direct investment projects in this sector. There are 14 projects under agriculture and forestry, medicinal and aromatic herbs, flower and vegetable seeds, floriculture and sericulture, processing of spices, coffee, fruits and dairy products; vegetable and mushroom farming and tea comes under this sector. Minerals that include stone and limestone, talc, silica, dolomite, iron-ore, oil and natural gas offer further scope for exploration. There are three foreign direct investment projects in this sector. Areas like computer software development, leather and textile, pharmaceutical; electronic and the service industries also carry high possibilities of foreign investment. As per the same statistics of July 2004, there are 435 manufacturing, 15 energy-based, 17 construction and 203 service industries-related foreign direct investment projects in Nepal

Tourism in Nepal 

Trekking The Himalaya, the "abode of snows", extends from Assam in eastern India west to Afghanistan. It is a chain of the highest and youngest mountains on earth and it encompasses a region of deep religious and cultural traditions and an amazing diversity of people. A trek in Nepal is a special and rewarding mountain holiday.

The only way to truly visit the remote regions of the kingdom is in the slowest and most intimate manner – walking. It requires more time and effort, but the rewards are also greater. Instead of zipping down a freeway, racing to the next "point of interest," each step provides new and intriguing viewpoints. Visitors can perceive their day as an entity rather than a few highlights strung together by a ribbon of concrete. For the romanticist, each step follows the footsteps of Hillary and Tenzing. 

Trekking Regions Everest Region The Khumbu or Everest region is the most popular trekking area in Nepal. It would probably be the most popular destination, but it is more difficult to get to Solu Khumbu than to the Annapurna area. To get near Everest, you must either walk for 10 days or fly to Lukla, a remote mountain airstrip where flights are notoriously unreliable. 
Solu Khumbu is famous, not only for its proximity to the world's highest mountain (8848 metres), but also for its Sherpa villages and monasteries. The primary goal of an Everest trek is the Everest base camp at an elevation of about 5340 metres. But you cannot see Everest from the base camp, so most trekkers climb Kala Pattar, an unassuming 5545-metre bump on the southern flank of Pumori (7145 metres). Annapurna region Central Nepal is dominated by the Annapurna Himal and the village of Pokhara. There are three major trekking routes in central Nepal: to Jomsom, to Annapurna Sanctuary, and a circuit of the Annapurna Himal itself. Pokhara is also a good starting place for short treks of one to four days, including the ‘Royal’ trek. Mustang is also geographically a part of the Annapurna region, but because treks to Mustang are subject to special restrictions. About two-thirds of the trekkers in Nepal visit the Annapurna region. The area is easily accessible, hotels in the hills are plentiful, and treks here offer good scenery of both high mountains and lowland villages. Langtang and Helambu The region north of Kathmandu offers a multitude of trekking destinations, all accessible without flights. The three major areas are Langtang, Gosainkund and Helambu, which can be combined in many different ways to make treks from seven to 16 days long. Langtang is a narrow valley that lies just south of the Tibetan border. 
It is sandwiched between the main Himalayan range to the north and a slightly lower range of snowy peaks to the south. Langtang Lirung (7246 metres) dominates the valley to the north; Gang Chhenpo (6388 metres) and Naya Kangri (5846 metres) lie to the south; and Dorje Lakpa (6966 metres) protects the east end of the valley. The area was designated Nepal's first Himalayan national park in 1971. 

A visit to the Langtang Valley offers an opportunity to explore villages, to climb small peaks and to visit glaciers at a comfortably low elevation. According to legend, a lama following a runaway yak discovered the valley. Hence the name - lang is Tibetan for "yak" and teng (more correctly dhang) means "to follow". Yaks still live in the valley, but they now share it with trekkers who make a seven to 11-day round trip from Kathmandu. Because there are good opportunities for moderate climbing excursions here, you should allow a few extra days for exploration of the extensive glacier system.

Helambu, about 75 km north of Kathmandu, is an area inhabited by Sherpas. You can include Helambu in a Langtang trek, either via Gosainkund or across the 5106-metre Ganja La. In winter, both of the high routes from Langtang are usually snow- covered and dangerous, difficult or impossible. The Helambu trek is popular because it is short, stays below 3500 metres and is feasible all winter. It is an easy trek to organise because transport from Kathmandu to Sundarijal, the starting point of the trek, is readily available and inexpensive. 

Eastern Nepal Trekking goals in eastern Nepal include Makalu base camp, an eastern approach to Everest, and the area near Kanchenjunga. There is endless variety in this part of the country. Most ethnic groups are represented and many villages, such as Dhankuta, Khandbari and Bhojpur, are large, prosperous and clean. The heavily populated Middle Hills are gouged by the mighty Arun River which has cut through at an elevation of less than 400 metres. The Arun is flanked by the major mountain massifs of Kanchenjunga and Makalu. Treks here tend to be more expensive, since you and your gear must travel to eastern Nepal by bus or plane. The treks are also longer because it requires two weeks to travel from Dharan to the high mountains. Flying to STOL airstrips at Tumlingtar and Taplejung can shorten the time, but increases the expense. 

Western Nepal Western Nepal is considered ‘unexplored’, but not quite. Western Nepal has a large population of both Hindus and Buddhists, and the countryside is crisscrossed by trails in all directions. It is remote and unknown from the Western viewpoint because of its relative inaccessibility and its distance from Kathmandu. Regular flights to Jumla and several other airstrips in the west reduce this remoteness somewhat. Many of the trails in the west continue to the northern side of the Himalayan ranges of Nampa, Saipal and Kanjiroba, making it easy for trekkers to zip up trails along river valleys and into Tibet. Restricted area treks There are many parts of Nepal into which the entry of foreigners is strictly controlled. Many treks that may be suggested on a map are in restricted areas and one either cannot get a permit for those regions or must travel with a liaison officer and pay for a special permit. Some areas specifically closed to foreigners are: Walunchung Gola, Rolwaling and the route to Nangpa La in Khumbu. When planning a trek, assume that these areas will remain closed. Don't count on a last-minute change in the rules. Police checkposts are numerous in the hills and police will turn you back if you try to trek into a restricted area. 

Rafting in Nepal Nepal is a river runner's paradise – no other country has such a choice of multi-day trips, away from roads, in such magnificent mountain surroundings, with warm rivers, a semi tropical climate, impressive geography, exotic cultures, wildlife and friendly welcoming people! 

Nepal is a magnificent holiday in its own right – a fairy tale land of temples, mountains, dramatic festivals, exotic culture, colourful people, medieval villages, superb craft shopping, great food and sights - the bonus is some of the World's best rivers! Rafting in Nepal is usually a 'wilderness' experience in that most rivers don't have highways alongside them - but it's a soft, tamed, wilderness with white beaches for camping, clean blue rivers, friendly locals and few 'nasties' - someone described it as 'blissful escapism'! Nepal has earned a reputation as one of the best destinations in the world for white water rafting. Nepal's thundering waters, coming from the glaciers of the mighty Himalaya, provide unmatched thrills for rafting and immersing oneself in the landscape. A rafting trip is bound to be the highlight of your stay in the country. 

Rafting spots Karnali River Karnali is Nepal's longest and largest river and with its tributaries, it drains most of the Far West of Nepal – the 'Wild West' as many people call it. This bottom section of the river definitely lives up to that name – the area that it flows through is wild and relatively unpopulated some of the most pristine jungle scenery in Nepal, an abundant wildlife. Trisuli River The Trisuli is Nepal's most popular rafting river, impressive gorges, exciting rapids, some easier sections, and easily accessible from Kathmandu and Pokhara. The Trisuli white water trip exciting, fun and safe for all age groups. Our 2-day trips will overnight at Trisuli River Retreat our private camp with comfortable safari-tented accommodation set in private grounds with river views surrounded by forests. Recommended for intermediate Kayakers. The Trusili raft trip can be easily combined with a trek out of Pokhara and/or a visit to Royal Chitwan National Park. Arun River 

Nepal has four major river systems with more than two hundred fifty sizeable tributaries. The major rivers are the Sapta Kosi in extremely eastern part of Nepal the Narayani in central the Karnali in west and Mahakali is far western part of Nepal. Arun is one of the mighty tributary of Sapta Kosi. Its source is on the Tibetan Plateau, to the north of Kathmandu and it then swings in an easterly arc for some 200 km draining the Northern slopes of Mt. Everest and Makalu before cutting south through the Himalaya and into Nepal. It cuts through the Himalaya in some deep and awesome gorges that have fascinated explorers, travelers, geographers and river runners, and then flows almost directly south to join the Sunkosi shortly before the Indian plain. Kaligandaki River A beautiful unspoilt river with good white water, gorges, wildlife and a feeling of remoteness. Recommended for people looking for an exciting medium-length raft trip and as a self sufficient kayak trip for intermediate and expert kayakers. We suggest combining this river with a trek before hand in the Annapurna mountains. Also consider continuing down the lower Kali Gandaki to Chitwan National Park. Sunkosi River 

Also known as "river of gold", Sunkoshi is one of the classic rivers of the world. It rises from Tibet & Mt. Everest region, has a mixture of small and big volume warm water, surges for 270 km (160 miles approx) passing through the jungle, remote areas and unspoiled beautiful campsites. A classic multi-day River trip with around 40 rapids grade 2-5 will make your trip fantastic. Recommended for advance Rafters and Kayakers. Visa for Nepal You can obtain a visa before you come to Nepal or upon arrival in Kathmandu. You need only to fill in a form and pay a fee (in US dollars cash only), but it takes a bit of time at the airport after you arrive. To obtain a visa for Nepal in advance, write to one of the addresses below for instructions and a form. Fill in the form and return it with the appropriate fee, photos and your passport. If you are making a side trip to India or Tibet and then returning to Nepal, be sure to get a double entry visa. Your passport with a visa stamped in it should be returned to you by mail. The visa regulations for Nepal are a bit complex. You need to decide what kind of visa to purchase depending on how long you plan to stay in Nepal. 

Visa fees are: * 60-day single-entry: US$30 * 60-day double-entry: US$55 (useful if you are making a side trip to Bhutan or Tibet). * 60-day triple-entry: US$70 * 60-day multiple-entry: US$90 If you have already visited Nepal within 150 days of the same visa year you must pay US$50 for 30 days. Visa extensions cost US $1 for each day beyond the expiration date of the original entry visa.