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(…) Current policy for agriculture is set out in the ADS 2015-2035 and several product-specific policy documents. The ADS includes a number of programmes aimed at improving efficiency, sustainability, and resilience to climate change and disasters. The largest programme is for irrigation (NR 95 billion over 10 years), and the total 10-year cost of all programmes is about NR 502 billion, about 11% of which is to come from donors. The ADS also sets out targets, with an emphasis on developing a trade surplus for agricultural goods, improving sustainability and competitiveness, and reducing poverty. The most recent notification to the WTO on domestic support is for calendar years 2010 and 2011; it showed that all support was in the Green Box, and amounted to less than 1% of the value of production. Data on government spending during the review period shows that government programmes are focused on input and infrastructure support, research, and interest rate subsidies. Exports of some agricultural products qualify for export support under the Cash Incentive for Exports (CISE) 2070, with a budget allocation of US$5.4 million for FY 2018-19.

The mining and quarrying sector (0.6% of GDP in 2017-18) is gradually being developed. Under the National Mineral Resources Policy 2017, Nepal's main policy objectives include making the sector more competitive, sustainable and environmentally friendly by using new and innovative technology; and attracting larger private sector investment by providing incentives and facilities.

The period 2016-26 has been declared National Energy Crisis Reduction and Electricity Development Decade (Energy Emergency Decade). Nepal recognizes that it must accelerate the development of its abundant hydropower potential as an important step to reduce poverty and stimulate economic growth. Hydropower development would provide clean energy to enhance economic and social development in rural and urban areas, and enable Nepal to generate revenue from the export of excess energy to neighbouring countries. Nepal aims to achieve zero power outages and ensure energy security by 2019.

The Foreign Investment and Technology Transfer Act (FITTA), 1992 and the Industrial Enterprises Act, 2016, provide the legal basis for regulating, administering, and facilitating FDI. In addition, several other laws also affect FDI, including: (…) and the Environment Protection Act, 1997 (and the Environment Protection Rules, 1997). To promote investment in national priority projects, FDI is encouraged in the recent enactments and amendments of laws in different sectors, and a draft law on foreign investment has been prepared. (...)

Chart 2.4 Approving agencies and procedure for starting a business
(…)
Environmental assessment as per EPR (submission of IEE or EIA)

According to the Export and Import Control Act 1957, Nepal may prohibit or restrict imports of certain goods on the grounds of: (…) conservation of natural resources; (…)

Table 3.8 Products subject to import prohibitions
Product description
(…)
4 Plastics scrap and bags and sheets of plastics below 20 micron thickness
5 High carbon disposing incandescent light bulbs
(…)

As per notifications made to the WTO, Nepal requires import licences or permits for certain items: (…) ozone depleting substances (ODS); (…) Nepal's most recent notification under Article 7.3 of the Agreement on Import Licensing Procedures was in 2015.

According to the authorities, export duties are applied to some products to protect the environment, (…) About 100 products are subject to export duties in FY 2017-18 (Table A3.2), mainly vegetables; maize; rice; wheat; oil cake; sand, stone and pebbles; and some woods. Specific rates are applied for 55 tariff lines, and ad valorem for 45 tariff lines.

Table 3.12 List of products banned from exportation
Name of product Rationale for export ban
(…)
Protected wildlife, protected body parts of wildlife, and endangered wildlife
a. Untreated skin (including dry salted)
b. Unprocessed wool and hair (fur) of wild animals
c. Wild animals
d. Bile and any part of wild animals Protection of wildlife
(...)
Forest resources related to biodiversity and environment conservation
a. Dactylorhiza hatagirea and Juglans regia
b. Non-processed valeriana jatamansi, Rock Exudat, Parmelia sps and other (Lichen sps), Abies spectabilis, Cinnamomum glaucescens To conserve biodiversity and the environment
(...)
Other products
(...)
b. Logs and timber from naturally grown plants Exhaustible natural resources: most are from naturally grown plants. Their exportation is banned, and their domestic consumption restricted