Local communities and Indigenous Peoples have contributed significantly in the protection and management of forest areas in Nepal, but their contribution is rarely appreciated. Despite having successful outcomes of community forestry in Nepal, Indigenous Peoples and  local communities lack full security of tenure over forests and land resources and are restrained by restrictions and controls imposed by forest bureaucracy and their exercise of discretionary power in the interpretation of legal frameworks.

For example, the forest bureaucracy still retains powers to withdraw community forestry and maintains administrative and technical control over harvesting and sale of forest products (mainly timber) from community forest areas. The government recently passed new federal Forest Act 2019 and Regulation 2022, but both are regressive in terms of devolving power to local communities, and securing and promoting land rights.