Nepal- Finland Relations

Nepal-Finland Relations

Political Relations

Nepal and the Republic of Finland established diplomatic relations on 21 September 1974. The relations between the two countries have been marked by friendship, cordiality and cooperation. Finland opened its Embassy in Kathmandu in 1992. The Embassy of Nepal in Copenhagen is concurrently accredited to Finland.

Exchange of visits

From the Nepali side, visits include those by former Foreign Minister Sujata Koirala (2010), Prime Minister Pushpa Kamal Dahal ‘Prachanda’ (2009), Foreign Minister Chakra Prasad Bastola (2001) and Prime Minister Girija Prasad Koirala (1993). The earliest visit was by Their Majesties late King Birendra and Queen Aishwarya in 1989.

Most recent visit from the Finnish side includes the visit of Minister for Foreign Trade and Development Mr. Ville Tavio (2024). Other visits in the past included visit by Minister for International Development Ms. Heidi Hautala (2011), Minister for Foreign Trade and Development Mr. Paavo Vayrynen (2009), Minister of Development Cooperation Mr. Toimi Kankaanniemi (1994) and Foreign Minister Mr. Pertti Passio (1991).

Bilateral Consultation Mechanism

An MoU on the establishment of a Bilateral Consultation Mechanism (BCM) between the Foreign Ministries of Nepal and Finland was signed in 2019. 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.

Development Cooperation

Finnish cooperation in Nepal began in 1982 with the grant assistance of 6,000 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 shifted towards poverty alleviation, sustainable development, disaster risk reduction, and promotion of democracy, human rights, equalization and participatory system of governance.

Finland also channels its assistance through international agencies such as FAO, ILO, UNICEF and UNFPA.

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 of 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. 

Framework Agreement on Public Sector Investment Facility (PIF) Scheme

During the visit of Finnish Minister for Foreign Trade and Cooperation H.E. Mr. 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 in Kathmandu.

Trade and Investment

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 has remained in 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 in the recent years.

                                                                              (Value in 000 Rupees)

Bilateral Agreements

Nepal and Finland have signed the following agreements:

1. Agreement on the Cooperation in Local Adaptation to Climate Change (2024)
2. Agreement on Technical Cooperation (1988)
3. Agreement on the Promotion and Protection of Investments (2009)
4. Framework Agreement on Projects Funded Under Public Sector Investment Facility (PIF) Scheme (2024)

Tourism and People-to-People relations:

Following table highlights the arrival of Finnish tourists in Nepal in the last two years.

The number of Nepalis living in Finland is estimated to be around 5,000.

Europe Division

Ministry of Foreign Affairs

As of March 2026