Forest is also known as the wealth of Nepal. Around 25.4% of Nepal's land area, that is 36,360 km2 (14,039 sq mi) is covered with forest. Nepal forest contains many natural herbs that are rarely found in whole world. About 5.1% Nepal's forests are classified as production forest. Nowdays Nepal lost about 2,640 km2 (1,019 sq mi) of forest. Nepal's 2000-2005 total deforestation rate was about 1.4% per year meaning it lost an average of 530 km2 (205 sq mi) of forest annually.
Deforestation is driven by multiple processes. In the hills, conversion of forests to agricultural land—even on steep hillsides via terracing—is historically important, but has lessened in recent decades due to a shortage of remaining suitable terrain in the hills while mosquito suppression having opened formerly malarial land for settlement in the Terai. As a result, forest land in the Terai is being cleared by settlers.
In the hills, greater contemporary impacts involve degradation of forests rather than outright clearing. Degradation is caused by harvesting firewood, and to a lesser extent wood for traditional architecture. These harvests are often carried to unsustainable levels. Trees are also severely damaged by intensive harvesting of leaves as fodder, especially in the driest months preceding the summer monsoon. Households typically keep at least one cow or buffalo for milk production and may also keep oxen for agricultural labor. In addition goats are herded as the main source of meat that is culturally acceptable to upper-caste Hindus.
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