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PESTEL analysis of Nepal

What is PESTEL analysis?


A PESTEL analysis is a framework or tool used by marketers to analyse and monitor the
macro-environmental (external marketing environment) factors that have an impact on an
organisation. The result of which is used to identify threats and weaknesses which is used in a
SWOT analysis.
Political The main issues addressed in this section include political stability, tax guidelines, trade
regulations, safety regulations, and employment laws.
Economic This include factors like inflation, interest rates, economic growth, the unemployment
rate and policies.
Social It is related to customer demographics, cultural limitations, lifestyle attitude, and education.
Technological These factors include technological advancements, lifecycle of technologies, and the
role of the Internet.
Legal It deals with discrimination laws, health and safety laws, consumer protection laws, copyright
and patent laws.
Environmental It is related to changes in weather, laws regarding pollution, waste management,
use green or eco-friendly products.

Political-Nepal is a federal democratic region, a federal republic is a federation of states with a


republican form of government. A federation is the central government. The states in a federation also
maintain the federation. Usage of the term republic is inconsistent but, as a minimum, it means a state
or federation of states that does not have a monarchy.

1726-1950 (Shah Dynasty, unification) -In the mid-18th century, Prithvi Narayan Shah,
a Gorkha king, set out to put together what would become present-day Nepal. He embarked on his
mission by securing the neutrality of the bordering mountain kingdoms. After several bloody battles
and sieges, notably theBattle of Kirtipur, he managed to conquer the Kathmandu Valley in 1769

Rivalry between Kingdom of Nepal and the East India Company over the annexation of minor states
bordering Nepal eventually led to the Anglo-Nepali War (181516)

The war ended in the Sugauli Treaty, under which Nepal ceded recently captured portions of Sikkim
and lands in Terai as well as the right to recruit soldiers.

Rana rule- Jung Bahadur Kunwar emerged victorious and founded the Rana dynasty, later known
as Jung Bahadur Rana. The king was made a titular figure, and the post of Prime Minister was made
powerful and hereditary. The Ranas were staunchly pro-British and assisted them during the Indian
Rebellion of 1857 (and later in both World Wars). Some parts of the Terai region populated with nonNepali peoples were gifted to Nepal by the British as a friendly gesture because of her military help to
sustain British control in India during the rebellion. In 1923, the United Kingdom and Nepal formally
signed an agreement of friendship that superseded the Sugauli Treaty of 1816.

End of democratic practice in 1960 by King Mahendra .After years of power wrangling between
the king and the government, King Mahendra (ruled 195572) scrapped the democratic experiment in
1959, and a "partyless" Panchayat system was made to govern Nepal until 1989, when the "Jan
Andolan" (People's Movement) forced King Birendra (ruled 19722001) to accept constitutional
reforms and to establish a multiparty parliament that took seat in May 1991. In 199192, Bhutan
expelled roughly 100,000 Bhutanese citizens of Nepali descent, most of whom have been living in
seven refugee camps in eastern Nepal ever since.

On June 1, 2001, there was a massacre in the royal palace. King Birendra, Queen Aishwarya and
seven other members of the royal family were killed

Dismissal of democratic experiment in 2005 by King Gyanendra -Following the carnage, King
Birendra's brother Gyanendra inherited the throne. Dismissal of democratic experiment in 2005 by
King Gyanendra In September 2005, the Maoists declared a three-month unilateral ceasefire to
negotiate.

In response to the 2006 democracy movement, King Gyanendra agreed to relinquish sovereign power
to the people. On 24 April 2006 the dissolved House of Representatives was reinstated. Using its
newly acquired sovereign authority, on 18 May 2006 the House of Representatives unanimously voted
to curtail the power of the king and declared Nepal a secular state, ending its time-honoured official
status as a Hindu Kingdom. On 28 December 2007, a bill was passed in parliament to amend Article
159 of the constitution replacing "Provisions regarding the King" by "Provisions of the Head of the
State"declaring Nepal a federal republic, and thereby abolishing the monarchy. The bill came into
force on 28 May 2008.

Republic (2008)
The Unified Communist Party of Nepal (Maoist) won the largest number of seats in the Constituent
Assembly election held on April 10, 2008, and formed a coalition government which included most of
the parties in the CA. Although acts of violence occurred during the pre-electoral period, election
observers noted that the elections themselves were markedly peaceful and "well-carried out

The newly elected Assembly met in Kathmandu on May 28, 2008, and, after a polling of 564
constituent Assembly members, 560 voted to form a new government, with the monarchist Rastriya
Prajatantra Party, which had four members in the assembly, registering a dissenting note. At that point,
it was declared that Nepal had become a secular and inclusive democratic republic, with the
government announcing a three-day public holiday from May 2830. The king was thereafter given
15 days to vacate Narayanhity Palace so it could reopen as a public museum.
Nonetheless, political tensions and consequent power-sharing battles have continued in Nepal. In May
2009, the Maoist-led government was toppled and another coalition government with all major
political parties barring the Maoists was formed. Madhav Kumar Nepal of the Communist Party of
Nepal (Unified MarxistLeninist) was made the Prime Minister of the coalition government In
February 2011 the Madhav Kumar Nepal Government was toppled and Jhala Nath Khanal of the
Communist Party of Nepal (Unified MarxistLeninist) was made the Prime Minister. In August 2011
the Jhala Nath Khanal Government was toppled and Baburam Bhattarai of the Communist Party of
Nepal (Maoist) was made the Prime Minister.
The political parties were unable to draft a constitution in the stipulated time. This led to dissolution
of the Constituent Assembly to pave way for new elections to strive for a new political mandate. In
opposition to the theory of separation of powers, then Chief Justice Khil Raj Regmi was made the
chairman of the caretaker government. Under Regmi, the nation saw peaceful elections for the
constituent assembly. The major forces in the earlier constituent assembly (namely CPN Maoists and
Madhesi parties) dropped to distant 3rd and even below.
In February 2014, after consensus was reached between the two major parties in the constituent
assembly, Sushil Koirala was sworn in as the new prime minister of Nepal.
In September 20, 2015, a new constitution, the "Constitution of Nepal 2015" was announced by
President Ram Baran Yadav in the constituent assembly. The constituent assembly was transformed
into a legislative parliament by the then-chairman of that assembly. The new constitution of Nepal has
changed Nepal practically into a federal democratic republic by making 7 unnamed states.
On April 25, 2015, a magnitude 7.8 earthquake struck Nepal. Two weeks later, on May 12, another
earthquake with a magnitude of 7.3 hit Nepal, killing more than 150 people in Nepal and more than
200 people in total.
In October 2015, Bidhya Devi Bhandari was nominated as the first female president

Economic
Economy of Nepal- Nepal's gross domestic product (GDP) for 2012 was estimated at
over $17.921 billion (adjusted to nominal GDP). In 2010, agriculture accounted for 36.1%, services
Comprised 48.5%, and industry 15.4% of Nepal's GDP. While agriculture and industry are
contracting, the contribution by the service sector is increasing.

Agriculture employs 76% of the workforce, services 18% and manufacturing and craft-based industry
6%. Agricultural produce mostly grown in the Terai region bordering India includes tea, rice, corn,
wheat, sugarcane, root crops, milk, and water buffalo meat. Industry mainly involves the processing
of agricultural produce, including jute, sugarcane, tobacco, and grain. Its workforce of about 10
million suffers from a severe shortage of skilled labor.

Nepal's economic growth continues to be adversely affected by the political uncertainty. Nevertheless,
real GDP growth was estimated to increase to almost 5 percent for 20112012. This is an
improvement from the 3.5 percent GDP growth in 20102011 and would be the second-highest
growth rate in the post-conflict era

The proportion of poor people has declined substantially since 2003. The percentage of people living
below the international poverty line (people earning less than US$1.25 per day) has halved in seven
years at this measure of poverty the percentage of poor people declined from 53.1% in 2003/2004 to
24.8% in 2010/2011. With a higher poverty line of US$2 per-capita per day, poverty declined by onequarter to 57.3%. However, the income distribution remains grossly uneven.
The rate of unemployment and underemployment approaches half of the working-age population.
Thus many Nepali citizens move to other countries in search of work. Destinations include India,
Qatar, the United States, Thailand, the United Kingdom, Saudi Arabia, Japan, Brunei Darussalam,
Australia, and Canada. Nepal receives $50 million a year through the Gurkha soldiers who serve in
the Indian and British armies and are highly esteemed for their skill and bravery. As of 2010, the total
remittance value is around $3.5 billion. IN 2009 alone, the remittance contributed to 22.9% of the
nation's GDP

Nepal's exports of mainly carpets, clothing, hemp, leather goods, jute goods and grain total $822
million. Import commodities of mainly gold, machinery and equipment, petroleum products and
fertilizer total US$2 billion. European Union (EU) (46.13%), the US (17.4%), and Germany (7.1%)
are its main export partners. The European Union has emerged the largest buyer of Nepali ready-made
garments (RMG). Exports to the EU accounted for "46.13 percent of the country's total garment
exports". Nepal's import partners include India (47.5%), the United Arab Emirates (11.2%), China
(10.7%), Saudi Arabia (4.9%), and Singapore (4%)

SocialEducation- The overall literacy rate (for population age 5 years and above) increased from 54.1%
in 2001 to 65.9% in 2011. The male literacy rate was 75.1% compared to the female literacy rate of
57.4%. The highest literacy rate was reported in Kathmandu district (86.3%) and lowest
in Rautahat (41.7%).

Life-style- Main Occupations


In general mostly Nepalese people are involved in their traditional occupation agriculture. Most of the
people those who are living out of town they belongs their own family farm land where they grow
both main crops and different cash crops seasonally. About 76% of total population in Nepal still
belongs to traditional agriculture system as their main source of economy and rest of do other jobs as
cottage industries, general manufactures, goods trading, government officials, hospitality tourism and
others. All together still about 33% of total populations are dependent in agriculture.

Food Habit
In normal way Nepalese peoples food habit can be marked as a rice culture social adoption. Nepalese
main course of meal known as Dal-Bhat-Tarkari traditionally which is perfect combination of
carbohydrate, protein, vitamin, mineral, and fat. The real wholesome Dal-Bhat-Tarkari is being eaten
all over Nepal generally and it is habitual way of twice a day. Besides morning and late afternoon time
tea, coffee other drinks and light food snacks are also can be eaten normally. Dall is well cooked lentil
soup from different beans, Bhat is boiled rice, Tarkari is curried vegetables, pickle of seasonal
vegetable or fruits, salad and curried or fried meat as a non-vegetarian food can be eaten commonly.
Well refined mustard oil, ghee are used for the typical Nepalese cooking propose of curry items for
taste and flavor spices are used such as cumin seed, coriander, black pepper, sesame seed, turmeric,
garlic, ginger, methi (fenugreek), bay leaf, clove, cinnamon, pepper, chilies, mustard seed and salt
added by taste.
In the mountain area, where rice is growing very less, millet, barley, bark wheat and maize are
growing commonly in suitable climate so people of there mostly eat Dhindo with Gundruk or
different vegetable curry, meat curry, home-made pickle, yoghurt and milk as a their main course but
they also like to have Dall Bhat time to time. This authentic tradition of food habit is very common all
over Nepals mountain areas. There is also several common continental food items are available in
cities abundantly as well many countries food items are prepared by several restaurants and fast food
stalls of around main hub of tourists.

Science and technology- Nepal has been a late starter in modem science and
technology. In pursuance of self- reliance, it developed technological capabilities in some specific
areas such as agriculture, civil engineering, architecture, metallurgy, water management, medicine,
textile and paper manufacture, dyeing and food technology. Its isolation for over a century, coinciding
with the Industrial Revolution in the West and colonial incursion in India, deprived the country from
the advances in S&T elsewhere. After the advent of democracy in 1950, the country embarked on the
path of modernisation. An initiation in S& T activities took place, along with the inception of a
development plan, in 1956. The S& T sector received its due importance in development plan in the
Sixth Plan (1980-85). Nepal's new constitution, promul gated in 1990, has emphasised the importance
of S&T explicitly by including a Directive Principle to promote its advancement. Major S&T
organisations, including a science academy, the Ministry for Science and Technology, and several
research centres and institutions for higher education in science have evolved during last five decades.
However, with the low ratio of S&T manpower (0.4 per 1, 000 population) and low R&D expenditure
(0.35 per cent of GNP), Nepal faces formidable challenges seeking political commitments with longterm vision and recognition of S&T as the strategic variable for overall national development.

Legal
Patent laws of Nepal
ACQUISITION OF PATENT RIGHTS: (1) A person desirous of Obtaining right over
any patent shall register such patent in his/her name under This Act.
(2) No one shall copy or use or cause to use in the name of the others. Without transforming the
ownership or written permission pursuant to Section.21d, the patent registered in the name of any
person pursuant to this Act.
4. APPLICATION FOR ACQUIRING RIGHT OVER PATENT: (1) A
Person desirous of having any patent registered in his/her name shall submit to The Department an
application as specified in Schedules 1 (a), containing the Particulars mentioned hereunder, along with
all available evidence in his/her Possession:
(a) Name address and occupation of the parson inventing the
Inserted by the first amendment
Amended by the Act Made to Amend Some Nepal Acts Relating to Export and Import and Intellectual
(b) If the applicant him/herself is not the inventors, how and in what
Manner he/she acquired title thereto from the inventor.
(c) Process of manufacturing, operating or using the patent.
(d) The theory or formula if any, on which the patent is based.
(2) Along with the application pursuant Sub- Section (1), applicant
Shall also submit map and drawings along with particulars, of the patent,
As well as the fee specified in Schedule 3(1) (a).
5. INVESTIGATION BY DEPARTMENT: (1) On receipt of application Submitted
under Section 4, the Department shall, on the advice of experts if so Considered necessary, conduct all
investigation or study to ascertain whether The patent investigations in the application is a new
Invention or not, and whether it is useful to the general public or not, and thereafter decide whether
Or not to register such patent.

(2) In case the Department concludes that any patent should not be registered in the circumstances
mentioned in Section 6, it shall give a notice to The applicant to the effect that the patent cannot be
registered according to His/her application.

6. CIRCUMSTANCES IN WHICH PATENTS CANNOT BE REGISTERED:


(1) The Department shall not register any patent under this Act in the following
Circumstances:(a) In case the patent is already registered in the name of any other person, or
(b) In case the applicant him/herself is not the inventor of the Patent sought to be so registered nor has
acquired rights Over it from the original inventor, or
(c) In case the patent sought to be registered is likely to adversely effect the public health, conduct or
morality or The national interest, or
(d) In case it is contradictory to the prevailing laws (the Registration of the patent) will constitute a
contravention of existing Nepal law. Provided that noting contained in Clause (a) shall be deemed to
have prejudiced to update transfer of the Registration of any patent under Section 9.
(2) In the circumstances mentioned in Sub-Section (1), the Department may cancel the registration of
any patent which had been registered. Provided that the Department shall, before cancelling the
registration of any Patent, provide reasonable opportunity to the patentee to show the cause, if
Any, why the registration of this patent should not be cancelled .
7. REGISTRATION OF PATENT: (1) On receipt of applications filed Under Section 4 for
registration of a patents, the Department shall, after Completing necessary investigations under
Section 5 issue a registration Certificate in a format as specified in Schedule 2 (a) to the applicant,
except in The circumstance mentioned in Section 6.
(2) For obtaining the certificate mentioned in Sub-Section (1), the Applicant shall pay the registration
fees as to the department specified in Schedule 3 (1) (b).
7A. Registered patents to be published: (1) Patents registered under this Act, Other than
those which must be kept secret in the national interest, shall be Published by the Department in the
Nepal Gazette for the information of the
(2) In case anybody desires to see or copy the particulars, maps, or drawings of a patent published
under Sub-Section (1), one may be allowed to do so after paying the fees prescribed by the
Department.
(3) In case anyone has any objection to such a patent, one may File a complaint with the Department
within a period of 35 days from the Date of seeing or copying the patent under Sub-Section 92).
(4) In case any complaint is received under Sub-Section (3), The Department shall take necessary
Action after conducting inquiries
8. TERM OF PATENT: (1) the title of the patentee to the patent shall be Valid only for a
period of seven years from the date of registration Thereof under Section 7, except when it is renewed
under Section 23 B.
(2) notwithstanding, anything contained in Sub-Section (1), in the case Of patent registered before the
commencement of this Section, the term Fixed according to the provision in force at the time of
registration thereof shall Be valid after the expiry of that term, the patent must be renewed under
Section 23B.

10. SUBMISSION OF DESIGN OR MODEL OF PATENT TO


The patentee shall submit to the National Archive also a copy of the design or model of the article
manufactured According to the patent registered under this Act .
11. Penalty for violation of Section 3: A person, who commits any of the acts, Shall be
fined as per gravity of offense by the order of the Department and the Goods or commodities related
to the offense shall be confiscated:
(a) A fine of up to Five Hundred Thousand Rupees for committing an Offense mentioned in Subsection 2 of Section 3.
(b) A fine of up to Two Hundred and Fifty Thousand (Two lac fifty Thousand) Rupees for committing
an attempt or abetment of an offense Mentioned in Sub-section (2) of Section 3.

Environment
Nepal - Environment
Nepal's environment has suffered the effects of agricultural encroachment, deforestation and
consequent soil erosion, and contamination of the water supply. Between the mid-1960s and the late
1970s, forestland declined from 30% to 22% of the total area, mainly because of the felling of timber
for firewood, which supplies over 90% of Nepal's fuel requirements. Moreover, it is estimated that
erosion causes the loss of about 240 million cu m of topsoil each year.
All of Nepal's forests were nationalized in 1957, but reforestation efforts have been minimal. A forest
conservation program, begun in 1980, includes the establishment of village tree nurseries, free
distribution of seedlings, and provision of wood-burning stoves of increased efficiency. By 1985,
however, deforestation averaged 324 sq. mi per year, while reforestation was only 4,000 hectares
(9,900 acres) per year. An additional4.4% of forest and woodland were lost between 1983 and 1993.
The FAO estimates that at the present rate of depletion, the forests will be virtually wiped out by
2015.
Air and water pollution are significant environmental problems in Nepal. According to United Nations
sources, the nation produces 18,000 tons of carbon monoxide and 3,300 tons of hydrocarbons per
year. Roughly one-third of the nation's city inhabitants and two-thirds of all rural dwellers do not have
pure water, and the use of contaminated drinking water creates a health hazard. Untreated sewage is a
major pollution factor: the nation's cities produce an average of 0.4 million tons of solid waste per
year.
In 2001, 28 of Nepal's mammal species and 27 of its bird species were endangered, as were 7 plant
species. Species classified as endangered in Nepal include the snow leopard, tiger, Asian elephant,
pygmy hog, great Indian rhinoceros, Assam rabbit, swamp deer, wild yak, chir pheasant, and gavial.

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