Deforestation is driven by multiple processes. Virtually throughout the nation, over-harvest of firewood remains problematic. Despite the availability of liquefied petroleum gas in towns and cities, firewood is sold more at energy-competitive prices because cutting and selling it is a fallback when better employment opportunities aren't forthcoming. Firewood still supplies 80% of Nepal's energy for heating and cooking. Harvesting construction timber and lopping branches for fodder for cattle and other farm animals are also deforestation/degradation drivers in all geographic zones.

Illegal logging is a problem in the Siwaliks, with sawlogs smuggled into India.Clearing for resettlement and agriculture expansion also causes deforestation as does urban expansion, building infrastructure such as schools, hospitals, electric transmission lines, water tanks, police and army barracks, temples and picnic areas.

In the Middle Hills road construction, reservoirs, transmission lines and extractive manufacturing such as cement factories cause deforestation. In the mountains building hotels, monasteries and trekking trails cause deforestation while timber-smuggling into the Tibet Autonomous Region and over-grazing cause degradation.