Deforestation: Forest converted to a non forest use, measured in terms of area. Annual rate of deforestation in Terai is 1.3 %, in Hills is 0.2 %, and in Nepal is 0.5 %. Illegal logging: Harvest, transportation, purchase or sale timber in violation of laws, measured in terms of volume or number of trees, extracted without permission, or in excess of agreed limits.

Forest is the base of rural economy of Nepalese people that it provides tangible resources like timber, fuel wood, fodder, herbs and non timber forest products which are the source of annual income for nation, communities and individuals. Functional role of forest in rural villages includes producing basic household consumptive goods, factor of production and basic life supporting service. But the condition of forest resource both in area and quality is decreasing.