The forest resource covers almost 40% of the land resource. As one of the main landholders of the country with agrarian economy, it has also the responsibility of contributing to reduce poverty, which is the sole goal of the country now. The government policy documents focus on rehabilitation of degraded lands, environmental conservation and poverty reduction through people's participation. Leasehold Forestry and Livestock Program

Leasehold Forestry and Livestock Programme (LFLP) is being implemented in 22 mid-hill districts of Nepal, which is the continuation and extension of the Hills Leasehold Forestry and Forage Development Project (HLFFDP) implemented in 10 hill districts of Nepal during 1992-2002 A.D. with the assistance of International Fund for Agricultural Development (IFAD). The overall goal of the programme is a sustained reduction in the poverty of the 44 300 poor households who are allocated leasehold forestry plots in 22 districts through increased production of forest products and livestock.