This document outlines directives for hospital pharmacies in Nepal. It establishes a Drug and Therapeutics Committee (DTC) to manage pharmacy services and formularies. The DTC is responsible for approving medicine lists, manufacturers, distributors and treatment guidelines. It also inspects hospital pharmacies. Hospitals must have a pharmacy management committee and permanent pharmacists to implement the DTC's directives. Staffing requirements are based on hospital bed count. Basic pharmacy infrastructure like storage, counseling rooms and billing areas must be provided. Free medicines are obtained from government grants and private hospitals must provide free treatment and medicines to 10% of poor patients. Financial management, auditing and reporting procedures are also defined.