Nepal and Finland established diplomatic relations on 21 September 1974. The relations between the two countries have been marked by friendship, cordiality and cooperation. The Finland opened its Embassy in Kathmandu in 1992. Nepal has no residential Embassy in Helsinki. The Embassy of Nepal in Copenhagen is concurrently accredited to Finland.
Nepal and Finland share common views on many issues and have been supporting each other in various international fora including the United Nations.
Exchange of visits/High-level Meetings:
Exchange of visits and regular contacts at various levels have contributed to strengthening the bilateral ties between the two countries.
Prime Minister of Nepal Rt. Hon. K P Sharma Oli met with the President of Finland H.E. Mr. Alexander Stubb on 25 September 2024 on the margins of UNGA79 in New York. Similarly, Minister for Foreign Affairs Hon. Dr. Arzu Rana Deuba held a bilateral meeting with H.E. Mr. Ville Tavio, Minister for Foreign Trade and Development of the Republic of Finland on 22 September 2024 on the sidelines of UNGA79 in New York.
Minister for Foreign Trade and Development of the Republic of Finland H.E. Mr. Ville Tavio visited Nepal and paid a courtesy call on Prime Minister of Nepal Rt. Hon. K P Sharma Oli on 26 November 2024. H.E. Mr. Tavio held a bilateral meeting with Minister for Foreign Affairs Hon. Dr. Arzu Rana Deuba on 26 November 2024.
Bilateral Consultation Mechanism:
An MoU on the establishment of a Bilateral Consultation Mechanism (BCM) between the Foreign Ministries of Nepal and Finland was signed on 21 June 2019. The Mechanism provides an opportunity to discuss the bilateral relations and cooperation as well as share views on matters of regional and global common concerns.
The first meeting of Mechanism was held in June 2020 in Helsinki. The second meeting of the Mechanism was held in Kathmandu on 5 June 2024.
Parliamentary Cooperation:
With a view to further deepening Nepal-Finland relations through parliamentary engagements, a Nepal-Finland Parliamentary Friendship Group was formed in the Federal Parliament of Nepal in 2018. The Group has been reconstituted in December 2024.
Development Cooperation:
Finnish cooperation in Nepal began in 1982 with the grant assistance of 6000 MT of chemical fertilizers. The two countries signed the Development Cooperation Agreement in 1988. The assistance has increased and widened in recent years. Earlier, the Finnish development cooperation in Nepal was focused on energy, forestry and water resources. In recent years, the cooperation has been shifted towards alleviation of poverty, environmentally sustainable development, disaster risk reduction, and promotion of democracy, human rights, equalization and participatory system of governance.
Finland also provides assistance through international agencies such as FAO, ILO, UNICEF and UNFPA.
Finland’s assistance for the detailed engineering design of the Kali Gandaki Hydro Project, Rural electrification and Multi-fuel Diesel Plant is highly appreciated in Nepal.
Finland provided relief aid to the victims of April 2015 earthquakes through WHO, UNICEF, Red Cross and Save the Children.
There are few ongoing projects with the Finnish cooperation in the areas like school education, health, sanitation and hygiene, safe drinking water, sustainable agriculture and climate change adaptation. Far Western, Karnali and Madhesh provinces are the focused areas of the ongoing projects running under the Finnish assistance.
There is also institutional-based cooperation between the two countries. The University-to-University Collaboration Agreement is under implementation on developing digital pedagogy for 21st Century Skills.
Framework Agreement on Public Sector Investment Facility (PIF) Scheme
During the visit of Finnish Minister for Foreign Trade and Cooperation H.E. Ville Tavio in November 2024, the Framework Agreement on Projects funded under Finland’s Public Sector Investment Facility (PIF) Scheme was signed between the two Governments.
Trade and Investment:
A MoU between FNCCI and its Finnish counterpart was signed in 1993, during the Nepali Prime Minister’s Visit to Finland. Similarly, an agreement between Nepal and Finland on Promotion and Protection of Investment was signed on 3 February 2009.
As of July 2023, there were 11 projects with total Finnish FDI of NRs. 365.88 million creating 294 jobs.
Nepal exports handicrafts, woollen carpets, ready-made garments, woollen goods, wooden and bamboo goods to Finland. Likewise, Nepal imports telecommunication equipment, machinery and parts, industrial raw materials, fertilizer, electrical goods, radio cassette and parts, guns and cartridges, wooden pole etc. from Finland.
The balance of trade is in the favour of Finland. Finland has remained a major trading partner of Nepal among the Nordic countries.
The table below reflects the trend of bilateral trade of recent years.
Value in USD ‘000’
|
Year |
Export |
Import |
Balance |
|
2021 |
514 |
4,427 |
-3913 |
|
2022 |
750 |
1,648 |
-898 |
Source: TEPC
Tourism and People-to-People relations:
Few thousands Finnish tourists visit Nepal every year. Similarly, over five thousand Nepalis are living in Finland. The Finnish tourists and Nepalis living in Finland have been contributing to foster a stronger people-to-people bond between our two countries.
Europe and the Americas Division
Ministry of Foreign Affairs
As of January 2025
