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