In Nepal, ethnical cultural groups are diverse and many of them have their own languages and customs. However, they can be geographically categorized according to their habitats. The Sherpas who are of Tibeto-Burman stock mainly occupy the higher hills of eastern and central Nepal. Sherpas inhabit the SoIu Khumbu region, where the world’s tallest peak Mt. Everest stands. Generally they are Buddhist but some follow the Bon, the pre-Buddhist religion of Tibet, and other religions. The Sherpas are famed for their valor and mountaineering skills and are professionally involved in many mountain expeditions. Today. Sherpas have joined other occupations as well, like business, administration and politics.

A wide variety of ethnic groups occupy the mid-hills. The Kirats or Limbus and Rais inhabit the east. During the 7th century BC, they established a dynasty in the Kathmandu valley and ruled it for 1,000 years. They are not originally Hindus or Buddhists but are ancestor worshipers. However, today, many embrace Hinduism. In the former days, they were warriors and skilled hunters. The Kirats speak Tibeto-Burman languages. Many serve in the British Army today and have earned a reputation as the brave Gorkhali.

The population of the Kathmandu Valley consists mostly of Newars. They speak Nepal-vasa and practice Hinduism and Buddhism. Many families celebrate both Hindu and Buddhist festivals. Their culture also reflects tantrism and animism. Newars are accomplished in commerce and they run most enterprises in the heart of the Valley. Historically, they are well known for establishing the three artistically beautiful cities of Patan, Bhaktapur and Kathmandu.

The inhabitants of the hill flanks surrounding Kathmandu Valley are mostly Tamangs, who make up one of the largest Tibeto-Burman ethnic groups in the Kingdom. In the Tibetan language, Tamang means "horse soldier" which gives us an idea about their past occupation. Today, they farm and work as semi-skilled and unskilled laborers. Tamangs practice Tibetan Lamaism or the Bon religion and speak their own language.

The Magars live in the western and central hills of Nepal. They had their own kingdoms until the 18th century and were closely associated with the Hindu Indo-Aryans in the west. Much of their cultural practices have been influenced by Chhetris, and today it is difficult to make any difference in the housing, dressing and farming practices of the two. The British and Indian armies and a great number serve in the Gorkha regiments have sought after the Magars.

Another ethnic group closely resembling the Magars in many aspects are the Gurungs. They also live in the western and central hills of the country although further to the east. Of Tibeto-Burman stock, the Gurungs have their own distinct language and practice shamanism. Many find employment in the British and Indian armies.

The Khas are the Bahuns and Chhetris who formed their own kingdoms in the far west. They are Hindus, and the Khas originally spoke Nepali, which is the country’s official language. Traditionally, the Bahuns were priests and are better educated than most ethnic groups. In fact, many occupy important government and educational posts in the kingdom today. The Chhetris have traditionally been known as warriors. Those living in the higher hills in the far western region lead hard lives because of lack of rain and farming is practiced in the river valleys and on the hill flanks.

The Tharus are one of the original ethnic groups to inhabit the Terai. The Majhi, Danuwar, Rajbansi, Darai, Satar, and Dhimal also occupy the flat lands. The Tharus have their own unique religion and practice animism. Their culture is especially suited for the hot plains and they are actually immune to malaria. They have Mongoloid features and speak their own language. There is much migration going on in the country now and the cultural definition of the people by area is difficult. Urban population is increasing by 7% each year and most cultures have intermingled.

Religious practices are an important part of the lives of the Nepalese people. Mythologies of various Hindu gods and goddesses abound in this country and cultural values are based on the philosophies of holy books like the Swasthani Gita, Ramayana etc.

Women and children visit neighborhood shrines at dawn to offer worship to the gods. Holding plates of rice, flowers, and vermilion powder, they perform PUJA by lighting incense, ringing the temple bell, and applying TIKA, a red paste, on their foreheads. Passers by stop at temples and show their reverence to the gods by spending a few minutes praying. Occasionally, groups of men sit near temples playing music and singing hymns until late night.

In Nepal, Hinduism and Buddhism are the two main religions. The two have co-existed down the ages and many Hindu temples share the same complex as Buddhist shrines. Hindu and Buddhist worshipers may regard the same god with different names while performing religious rites. Though Nepal is the only Hindu Kingdom in the world, many other religions like Islam, Christianity, and Bon are practiced here. Some of the earliest inhabitants like the Kirats practice their own kind of religion based on ancestor worship and the Tharus practice animism. Over the years, Hinduism and Buddhism have been influenced by these practices, which have been modified to form a synthesis of newer beliefs.

As a result, visitors to this country may often find the religious practices in Nepal difficult to follow and understand. But this does not prevent one from enjoying the different traditional ceremonies and rituals of Nepalese culture. It is indeed a totally new experience of religious fervor.

Hinduism : Thousands of gods and goddesses make up the Hindu pantheon. Brahma, Vishnu, and Shiva are he three major Hindu gods who have their own characteristics and incarnations. Each god has his own steed, which is often seen kneeling faithfully outside that god's temple. Symbolic objects are carried by the multiple and of each deity, which empowers them to perform great feats.

Buddhism : Shakyamuni Buddha is the founder of Buddhism who lived and taught in this part of the world during the sixth century BC. The great Stupas of Swayambhunath and Bouddhanath are among the oldest and most beautiful worship sites in the Kathmandu valley.

The spinning of prayer wheels, prostrating pilgrims, collective chants and burning butter lamps are some Buddhist practices often encountered by tourists. A slip of paper bearing a mantra is kept inside the wheels so that prayers are sent to the gods when the wheel is spun. Scenes from the Buddha's life and Buddhist realms are depicted on thangka scroll paintings, which are used during meditation and prayer ceremonies. Many Buddhist followers are seen performing these practices in Swayambhunath, Boudanath, and at other Buddhist sites around the Valley.

Nepal is a developing country with an agricultural economy. In recent years, the country's efforts to expand into manufacturing industries and other technological sectors have achieved much progress. Farming is the main economic activity followed by manufacturing, trade and tourism, the chief sources of foreign currency earnings are merchandise export, services, tourism and Gorkha remittances. The annual Gross Domestic Product (GDP) is about US$ 4.3 billion.

Eight out of 10 Nepalese are engaged in farming and it accounts for more than 40% of the GDP. Rolling fields and neat terraces can be seen all over the Terai flatlands and the hills of Nepal. Even in the highly urbanized Kathmandu Valley, large tracts of land outside the city areas are devoted to farming Rice is the staple diet in Nepal and around three millions are produced annually. Other major crops are maize, wheat, millet and barley. Besides food grains, cash crops like sugar cane, oil seeds, tobacco, jute and tea are also cultivated in large quantities.

Manufacturing is still at the developmental stage and it represents less than 10% of the GDP. Major industries are woolen carpets, garments, textiles, leather products, paper and cement. Other products made in Nepal are steel utensils, cigarettes beverages and sugar. There are many modeming large-scale factories but the majority are cottage or small-scale operations. Most of Nepal's industry is based in the Kathmandu Valley and a string of small towns in the southern Terai plains.

Nepal has a bicameral legislature. The lower house, the House of Representatives, consists of 205 members. Members to the lower house are elected every five years. The upper house, the National Assembly, is made up of 60 members who have a six-year tenure in office. One-third of the members retire every two years. The local government, 35 members by proportional representation, elects fifteen members and 10 members are nominated by the King.

Commerce has been a major occupation in Nepal since early times. Being situated at the crossroads of the ancient trans-Himalayan trade route, trading is second nature to the Nepalese people. Foreign trade is characterized mainly by import of manufactured products and export of agricultural raw materials. Nepal imports manufactured goods and petroleum products worth about US$ 1 billion annually. The value of exports is about US$ 315 million. Woolen carpets are Nepal's largest export, earning the country over US$ 135 million per year. Garment exports account for more than US$ 74 million and handicraft goods bring in about US$ 1 million. Other important exports are pulses, hides and skins, jute and medicinal herbs.

Making tourism one of the largest industries in the Kingdom. This sector has been expanding rapidly since its inception in the 1950s, thanks to Nepal's natural beauty, rich cultural heritage and the diversity of sightseeing and adventure opportunities available. At one time, tourism used to be the biggest foreign currency earner for the country.

Nepal is divided into five development regions, 14 zones, and 75 districts. Each zone consists of four to eight districts. Sixteen districts lie in the Himalayan region, 39 in the hills and 20 in the Terai. The lowest local level administrative unit is the Village Development Committee (VDC). There are 3,996 VDC's in the country.