International organization participation: AsDB, CCC, CP, ESCAP, FAO,
G-77, IBRD, ICAO, ICRM, IDA, IFAD, IFC, IFCTU, IFRCS, ILO, IMF, IMO,
Intelsat, Interpol, IOC, ISO (correspondent), ITU, NAM, SAARC, UN,
UNCTAD, UNESCO, UNIDO, UNIFIL, UNMIBH, UNMOP, UNPREDEP, UNTAES, UPU,
WFTU, WHO, WMO, WToO, WTrO (applicant)
Diplomatic representation in the US: chief of mission: Ambassador Bekh Bahadur THAPA chancery: 2131 Leroy Place NW, Washington, DC 20008 telephone: [1] (202) 667-4550 consulate(s) general : New York FAX: [1] (202) 667-5534
Diplomatic representation from the US: chief of mission: Ambassador Sandra L. VOGELGESANG embassy: Pani Pokhari, Kathmandu mailing address : use embassy street address telephone: [977] (1) 411179 FAX: [977] (1) 419963
Flag description: red with a blue border around the unique shape of two overlapping right triangles; the smaller, upper triangle bears a white stylized moon and the larger, lower triangle bears a white 12-pointed sun
Economy
Economy - overview: Nepal is among the poorest and least developed countries in the world with about 60% of the population living below the poverty line. Agriculture is the mainstay of the economy, providing a livelihood for over 80% of the population and accounting for more than 40% of GDP. Industrial activity is limited, mainly involving the processing of agricultural produce including jute, sugarcane, tobacco, and grain. Production of textiles and carpets has expanded recently and accounted for about 80% of foreign exchange earnings in the past two years. Apart from agricultural land and forests, exploitable natural resources are mica, hydropower, and tourism. Agricultural production is growing about 5% on average as compared with annual population growth of 2.5%. Since May 1991, the government has been moving forward with economic reforms particularly those that encourage trade and foreign investment, e.g., by eliminating business licenses and registration requirements in order to simplify investment procedures. The government has also been cutting expenditures by reducing subsidies, privatizing state industries, and laying off civil servants. The government made some progress in 1996, signing trade agreements with countries including India, and attracting substantial foreign investment in hydropower. Prospects for foreign trade and investment in areas besides hydropower and tourism will continue to remain poor because of the small size of the economy, its technological backwardness, its remoteness, and its landlocked geographic location highly susceptible to natural disaster. The international community provides funding for more than 60% of Nepal's development budget and more than 30% of total budgetary expenditures.
GDP: purchasing power parity - $26.5 billion (1996 est.)
GDP - real growth rate: 2.9% (FY95/96 est.)
GDP - per capita: purchasing power parity - $1,200 (1996 est.)
GDP - composition by sector: agriculture: 42% industry: 22% services: 36% (1996 est.)