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In 1986, the Traffic in Humans (Control) Act was passed in Nepal and was aimed at stopping trafficking in the form of prostitution.However, sex work is not officially recognized among the industrial or service sectors of labor.The trafficking of women and girls to India is a major problem which has made international news.Every year, a rough estimate of about 7,000 Nepali girls are trafficked to India, where they are forced into prostitution.Although there are no laws in Nepal criminalizing sex work specifically, there are some laws that were enacted throughout the 1980s that criminalize trafficking within and outside of Nepal that are used towards sex work.Many of these laws are sometimes interpreted to accuse sex workers as well, which comes from a lack of knowledge in the distinction between the sex trafficking scene and sex work.Since 1988, when the first case of HIV/AIDS in Nepal was reported, more than 1,750 cases of AIDS and over 11,000 cases of HIV infection were officially reported.

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Due to this high rate of poverty, the rural poor Nepalese people generally have large families, are landless or have very small landholdings, have high rates of illiteracy and are concentrated in specific ethnic, caste and minority groups.After a while, they are either abducted into the traffic scene, or coerced to join.Human trafficking in Nepal—more specifically, sex trafficking—is a common precursor to voluntary sex work.There have been rare instances in which members of a specific class have risen, and even in these cases, the members only rise within their own caste (see also Nepalese caste system).Due to this social trap, sex work is seen as a way to escape from the social organization.

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