Background: In 1951 the Nepali monarch ended the century-old system of rule by hereditary premiers and instituted a cabinet system of government. Reforms in 1990 established a multiparty democracy within the framework of a constitutional monarchy. An insurgency led by Maoist extremists broke out in 1996. The ensuing 10-year civil war between insurgents and government forces witnessed the dissolution of the cabinet and parliament and assumption of absolute power by the king. Several weeks of mass protests in April 2006 were followed by several months of peace negotiations between the Maoists and government officials and culminated in a November 2006 peace accord and the promulgation of an interim constitution. Following a nation-wide election in April 2008 the newly formed Constituent Assembly declared Nepal a federal democratic republic and abolished the monarchy at its first meeting the following month. The Constituent Assembly elected the country's first president in July. Between 2008 and 2011 there have been four different coalition governments led twice by the United Communist Party of Nepal-Maoist which received a plurality of votes in the Constituent Assembly election and twice by the Communist Party of Nepal-United Marxist-Leninist. In November 2011 Maoist Prime Minister Baburam BHATTARAI who was elected in August 2011 and the leaders of the main political parties signed an agreement seeking to conclude the peace process and recommit the Constituent Assembly to finish drafting the constitution by a May 2012 deadline.

Geographic coordinates: 28 00 N 84 00 E

Area
Rank: 94
Comparative: slightly larger than Arkansas

Coastline: 0 km (landlocked)

Maritime claims: none (landlocked)

Climate: varies from cool summers and severe winters in north to subtropical summers and mild winters in south

Terrain: Tarai or flat river plain of the Ganges in south central hill region rugged Himalayas in north

Natural resources: quartz water timber hydropower scenic beauty small deposits of lignite copper cobalt iron ore

Irrigated land: 11,680 km² (2003)

Total renewable water resources: 210.2 km³ (1999)

Natural hazards: severe thunderstorms; flooding; landslides; drought and famine depending on the timing intensity and duration of the summer monsoons

Geography
Note: landlocked; strategic location between China and India; contains eight of world's 10 highest peaks including Mount Everest and Kanchenjunga - the world's tallest and third tallest - on the borders with China and India respectively

Population: 29,890,686 (July 2012 est.)
Rank: 41
Growth rate: 1.768% (2012 est.)
Growth rate rank: 69
Below poverty line: 25.2% (2011 est.)

Ethnic groups: Chhettri 15.5% Brahman-Hill 12.5% Magar 7% Tharu 6.6% Tamang 5.5% Newar 5.4% Muslim 4.2% Kami 3.9% Yadav 3.9% other 32.7% unspecified 2.8% (2001 census)

Languages: Nepali (official) 47.8% Maithali 12.1% Bhojpuri 7.4% Tharu (Dagaura/Rana) 5.8% Tamang 5.1% Newar 3.6% Magar 3.3% Awadhi 2.4% other 10% unspecified 2.5% (2001 census)

Religions: Hindu 80.6% Buddhist 10.7% Muslim 4.2% Kirant 3.6% other 0.9% (2001 census)

Population growth rate: 1.768% (2012 est.)
Rank: 69

Birth rate: 21.85 births/1000 population (2012 est.)
Rank: 79

Death rate: 6.75 deaths/1000 population (July 2012 est.)
Rank: 142

Net migration rate: 2.58 migrant(s)/1000 population (2012 est.)
Rank: 31

Environment
Current issues: deforestation (overuse of wood for fuel and lack of alternatives); contaminated water (with human and animal wastes agricultural runoff and industrial effluents); wildlife conservation; vehicular emissions

Infant mortality rate
Rank: 52

Life expectancy at birth
Rank: 162

Total fertility rate: 2.41 children born/woman (2012 est.)
Rank: 90

Physicians density: 0.21 physicians/1000 population (2004)

Hospital bed density: 5 beds/1000 population (2006)

Sanitation facility access:
Unimproved:

Hivaids
Adult prevalence rate: 0.4% (2009 est.)
Adult prevalence rate rank: 71
People living with hivaids: 64,000 (2009 est.)
People living with hivaids rank: 51
Deaths: 4,700 (2009 est.)
Deaths rank: 40

Children under the age of 5 years underweight: 38.8% (2006)
Rank: 7

Education expenditures: 4.6% of GDP (2009)
Rank: 79

Government type: federal democratic republic

Administrative divisions: 14 zones (anchal singular and plural); Bagmati Bheri Dhawalagiri Gandaki Janakpur Karnali Kosi Lumbini Mahakali Mechi Narayani Rapti Sagarmatha Seti

Independence: 1768 (unified by Prithvi Narayan SHAH)

National holiday: Republic Day 29 May

Constitution: 15 January 2007 (interim Constitution); note - in April 2008 a Constituent Assembly was elected as an interim parliament to draft and promulgate a new constitution by May 2010; the deadline has been extended four times most recently until May 2012

Legal system: English common law and Hindu legal concepts

International law organization participation: has not submitted an ICJ jurisdiction declaration; non-party state to the ICCt

Suffrage: 18 years of age; universal

Legislative branch: unicameral Constituent Assembly (601 seats; 240 members elected by direct popular vote 335 by proportional representation and 26 appointed by the Cabinet (Council of Ministers))

Judicial branch: Supreme Court or Sarbochha Adalat (the president appoints the chief justice on recommendation of the Constitutional Council; the chief justice appoints other judges on the recommendation of the Judicial Council)

Political parties and leaders: Chure Bhawar Rastriya Ekata Party [Badri Prasad NEUPANE]; Communist Party of Nepal-Marxist Leninist or CPN-ML [C.P. MAINALI]; Communist Party of Nepal-Marxist Leninist Samaibadi [Jaqat Bahadur BOGATI]; Communist Party of Nepal-Maoist [Mohan BAIDYA also known as KIRAN]; Communist Party of Nepal-Unified [Raj Singh SHRIS]; Communist Party of Nepal-United [Chandra Dev JOSHI]; Communist Party of Nepal-Unified Marxist-Leninist or CPN-UML [Jhalanath KHANAL]; Dalit Janajati Party [Vishwendraman PASHWAN]; Federal Democratic National Forum; Federal Democratic National Party [Yogendra CHAUDBARI]; Federal Sadbhayana Party [Anil JHAL]; Madhesi People's Rights Forum-Democratic [Bijay Kumar GACHHADAR]; Madhesi People's Rights Forum-Nepal [Upendra YADAV]; Madhesi People's Rights Forum-Republic [Jaya Prakash GUPTA]; Nepal Loktantrik Samajbadi Dal [Laxmi Lal CHAUDBARY]; Nepal Pariwar Dal [Eknath DHAKAL]; Nepal Workers and Peasants Party [Narayan Man BIJUKCHHE]; Nepali Congress or NC [Sushil KOIRALA]; Nepali Janata Dal [Harish Chandra SHA]; Newa Rastriya Party [Keshav Man SHAKYA]; Rastriya Janamorcha [Chitra Bahadur K.C.]; Rastriya Janamukti Party [Malwar Singh THAPA]; Rastriya Janashakti Party or RJP [Surya Bahadur THAPA]; Rastriya Prajantantra Party [Pashupati Shumsher RANA]; Rastriya Prajantantra Party Nepal [Kamal THAPA]; Sadbhavana Party [Rajendra MAHATO]; Sadbhavana Party-Anandi Devi [Sarita GIRI]; Samajbadi Prajatantrik Janata Party Nepal [Prem Bahadur SINGH]; Terai Madhes Democratic Party [Mahantha THAKUR]; Terai Madhes Democratic Party-Nepal [Mahendra YADAVI]; Unified Communist Party of Nepal (Maoist) [Pushpa Kamal DAHAL also known as PRACHANDA]

International organization participation: ADB BIMSTEC CD CP FAO G-77 IAEA IBRD ICAO ICC ICRM IDA IFAD IFC IFRCS ILO IMF IMO Interpol IOC IOM IPU ISO (correspondent) ITSO ITU ITUC (NGOs) MIGA MINURSO MINUSTAH MONUSCO NAM OPCW SAARC SACEP UN UNAMID UNCTAD UNESCO UNIDO UNIFIL UNISFA UNMIL UNMISS UNMIT UNOCI UNTSO UNWTO UPU WCO WFTU (NGOs) WHO WIPO WMO WTO

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 displays a white 12-pointed sun; the color red represents the rhododendron (Nepal's national flower) and is a sign of victory and bravery the blue border signifies peace and harmony; the two right triangles are a combination of two single pennons (pennants) that originally symbolized the Himalaya Mountains while their charges represented the families of the king (upper) and the prime minister but today they are understood to denote Hinduism and Buddhism the country's two main religions; the moon represents the serenity of the Nepalese people and the shade and cool weather in the Himalayas while the sun depicts the heat and higher temperatures of the lower parts of Nepal; the moon and the sun are also said to express the hope that the nation will endure as long as these heavenly bodies

National symbols: rhododendron blossom

Economy overview: Nepal is among the poorest and least developed countries in the world with with about one-quarter of its population living below the poverty line. Agriculture is the mainstay of the economy providing a livelihood for three-fourths of the population and accounting for a little over one-third of GDP. Industrial activity mainly involves the processing of agricultural products including pulses jute sugarcane tobacco and grain. Nepal has considerable scope for exploiting its potential in hydropower with an estimated 42,000 MW of feasible capacity but political instability hampers foreign investment. Additional challenges to Nepal's growth include its landlocked geographic location civil strife and labor unrest and its susceptibility to natural disaster.

Real gdp purchasing power parity:
Rank: 102

Real gdp growth rate:
Rank: 69

Real gdp per capita:
Rank: 207

Agriculture products: pulses rice corn wheat sugarcane jute root crops; milk water buffalo meat

Industrial production growth rate: 2.9% (FY11/12)
Rank: 108

Labor force: 18 million
Rank: 33

Unemployment rate: 42% (2004 est.)
Rank: 192

Population below poverty line: 25.2% (2011 est.)

Distribution of family income gini index: 47.2 (2008 est.)
Rank: 99

Budget
Surplus or deficit: -6.2% of GDP (FY11/12)
Surplus or deficit rank: 176

Taxes and other revenues: 18% of GDP (FY11/12)
Rank: 176

Fiscal year: 16 July - 15 July

Inflation rate consumer prices: 7.7% (2011 est.)
Rank: 180

Central bank discount rate: 6.5% (31 December 2009 est.)
Rank: 55

Commercial bank prime lending rate: 8% (31 December 2011 est.)
Rank: 118

Stock of narrow money: $2.884 billion (31 December 2011 est.)
Rank: 116

Stock of broad money: $12.14 billion (31 December 2010 est.)
Rank: 99

Stock of domestic credit: $11.28 billion (31 December 2011 est.)
Rank: 99

Market value of publicly traded shares:
Rank: 82

Current account balance: $49 million (2011 est.)
Rank: 53

Exports: $998.9 million (2011 est.)
Rank: 157
Commodities: clothing pulses carpets textiles juice pashima jute goods
Partners: India 57.4% US 9.6% Germany 5.4% (2011)

Imports: $5.665 billion (2011 est.)
Rank: 118
Commodities: petroleum products machinery and equipment gold electrical goods medicine
Partners: India 57% China 25.9% (2011)

Reserves of foreign exchange and gold: $2.925 billion (2010 est.)
Rank: 103

Debt external: $3.673 billion (31 December 2010 est.)
Rank: 130

Stock of direct foreign investment at home: $N/A

Stock of direct foreign investment abroad: $N/A

Exchange rates:

Electricity
Production: 3.431 billion kWh (2012 est.)
Production rank: 126
Consumption: 5.349 billion kWh (2012 est.)
Consumption rank: 112
Exports: 0 kWh (2010 est.)
Exports rank: 112
Imports: 74 million kWh (2012 est.)
Imports rank: 96
Installed generating capacity: 717,000 kW (2009 est.)
Installed generating capacity rank: 129
Generation sources fossil fuels: 7.9% of total installed capacity (2009 est.)
Generation sources fossil fuels rank: 198
Generation sources nuclear: 0% of total installed capacity (2009 est.)
Generation sources nuclear rank: 153
Generation sources hydroelectricity: 92.1% of total installed capacity (2009 est.)
Generation sources hydroelectricity rank: 9
Generation sources other renewable sources: 0% of total installed capacity (2009 est.)
Generation sources other renewable sources rank: 169

Petroleum
Petroleum total petroleum production: 0 bbl/day (2011 est.)
Petroleum total petroleum production rank: 174
Crude oil exports: 0 bbl/day (2009 est.)
Crude oil exports rank: 163
Crude oil imports: 0 bbl/day (2009 est.)
Crude oil imports rank: 108
Crude oil proven reserves: 0 bbl (1 January 2012 est.)
Crude oil proven reserves rank: 173

Refined petroleum
Products production: 0 bbl/day (2008 est.)
Products production rank: 185
Products consumption: 18,430 bbl/day (2011 est.)
Products consumption rank: 133
Products exports: 0 bbl/day (2008 est.)
Products exports rank: 209
Products imports: 17,250 bbl/day (2008 est.)
Products imports rank: 111

Natural gas
Production: 0 m³ (2010 est.)
Production rank: 175
Consumption: 0 m³ (2010 est.)
Consumption rank: 181
Exports: 0 m³ (2010 est.)
Exports rank: 126
Imports: 0 m³ (2010 est.)
Imports rank: 110
Proven reserves: 0 m³ (1 January 2012 est.)
Proven reserves rank: 178

Carbon dioxide emissions
From consumption of energy: 3.359 million Mt (2010 est.)
From consumption of energy rank: 137

Telephones
Main lines in use: 845,500 (2011)
Main lines in use rank: 85
Mobile cellular: 13.355 million (2011)
Mobile cellular rank: 58

Broadcast media: state operates 2 TV stations as well as national and regional radio stations; roughly 30 independent TV channels are registered with only about half in regular operation; nearly 400 FM radio stations are licensed with roughly 300 operational (2007)

Internet
Country code: .np
Hosts: 41,256 (2012)
Hosts rank: 100
Users: 577,800 (2009)
Users rank: 116

Military expenditures: 1.6% of GDP (2006)
Rank: 89

Military service age and obligation: 18 years of age for voluntary military service; 15 years of age for military training; no conscription (2011)

Airports: 47 (2012)
Rank: 94

Railways
Rank: 130

Roadways
Rank: 118

Disputes international: joint border commission continues to work on contested sections of boundary with India including the 400 square kilometer dispute over the source of the Kalapani River; India has instituted a stricter border regime to restrict transit of Maoist insurgents and illegal cross-border activities; approximately 106,000 Bhutanese Lhotshampas (Hindus) have been confined in refugee camps in southeastern Nepal since 1990

Illicit drugs: illicit producer of cannabis and hashish for the domestic and international drug markets; transit point for opiates from Southeast Asia to the West