Contribution of forestry sector to the GDP in Nepal

Nepal is dominated by an agrarian society. Forestry is an integral part of agriculture and rural livelihoods and fuel wood is the principal source of rural energy. Non-wood forest products (NWFPs) have become the source of income for the rural poor, medicine for primary health care and revenue for the government. Out of the total tourists visiting Nepal about 45% visit protected areas. Although the forestry sector has a significant role in the economic development of the country, no comprehensive study has been done yet on the contribution of the forestry sector to the Gross Domestic Product (GDP). As a result, the contribution of the forestry sector has been underestimated and it has a low policy profile in Nepal. FAO has estimated that Nepal’s forestry sector contributed 3.5% to the GDP of the country in 2000 and 4.4% for the period 1990 to 2000. But it is estimated that the forestry sector alone contributes 15% to the GDP of the country.