NEPAL-GERMANY RELATIONS

Nepal-Germany Relations

 

Political Relations

Diplomatic relations between Nepal and the Federal Republic of Germany were established on 4 April 1958. The relationship between Nepal and Germany is based on friendship, mutual understanding and cooperation. Both the countries have established residential Embassies in each other's capital. Nepal established its Embassy in 1965.  Germany has its Embassy in Kathmandu since 1963.

 

Exchange of visits

Exchange of visits and regular contacts especially at high levels have contributed to strengthening the close and cordial relations between the two countries.

 

President of Nepal Rt. Hon. Mr. Ramchandra Paudel paid an official visit to Germany in 2024. Similarly, the Minister for Foreign Affairs Dr. Arzu Rana Deuba visited Germany in 2024.

 

Other visits from Nepal in the past include the visits of Prime Minister Girija Prasad Koirala (1995 and 2000), Prime Minister Man Mohan Adhikari (1995), Foreign Minister Mr. Madhav Kumar Nepal (1995), Foreign Minister Mr. Upendra Yadav (2009). Similarly, King Birendra visited Germany in 1986.

 

From the German side, Dr. Renate Kuenast, Chair of the South Asian Parliamentary Committee in the German Bundestag visited Nepal in 2023 leading a parliamentary delegation. Parliamentary State Secretary Dr. Barbel Koefler visited Nepal in 2022.

 

First lady of Germany Mrs. Elke Budenbender visited Nepal in her capacity as patron of UNICEF in February 2020.

 

Similarly, Mr. Tobias Pfluger, Chair of the South Asian Parliamentary Committee, paid an official visit to Nepal in March 2019 leading a parliamentary delegation.

 

Other high level visits from the German side in the past include the visits of Federal Chancellor Helmut Kohl (1987), Federal Presidents Prof. Dr. Roman Herzog (1996) and Heinric Luebke (1967).

 

Bilateral Consultation Mechanism

The Joint Declaration of Intent on the establishment of Bilateral Consultation Mechanism (BCM) was signed between the Foreign Ministries of the two countries in 2019. The Mechanism held its third round of consultations in March 2024 in Kathmandu.

 

Development cooperation

 

German development cooperation remains an important component of bilateral economic cooperation. Germany commenced its development cooperation to Nepal in 1961 with the technical assistance for the establishment of a Technical Training Institute at Thapathali. In 1964, it provided soft loans to Nepal Industrial Development Cooperation (NIDC).

 

In the subsequent years, Germany supported Nepal in the fields of power generation, agriculture, town development, preservation of monuments and temples, tourism, education and culture, solid waste management, promotion of small business projects, post conflict rebuilding, post-earthquake relief and containment of the Covid-19 pandemic etc.

 

Currently, the priority of the German development cooperation in Nepal focuses on Sustainable Economic Development, Climate and Energy, and Health and Social Protection.

 

Beyond its bilateral commitment, Germany also makes a substantial contribution to the Nepal’s development endeavours through international organisations – in particular the EU and the World Bank.

 

The principal implementing agencies of government development cooperation are the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) and the KfW Development Bank. KfW Development Bank has a long-standing engagement in Nepal spanning over 20 years. Its operations focus on financial and technical cooperation to promote sustainable economic development, renewable energy, energy efficiency, and post-earthquake recovery.

 

Trade

Germany is one of the Nepal's major export trading partner.  Major Nepali export to Germany includes carpet, handicraft, woollen shawl, silver jewellery, garments, leather, wooden and bamboo goods, lentils, tea, essential oils from herb and aromatic plants. Nepal mainly imports safety razor blades, Haemodialysis Machine, Dialysis Re-processor, video-scope Cath lab Computed tomography apparatus, Magnetic resonance imaging apparatus, Stoppers, lids caps and other closures from Germany.

 

The balance of trade is in favour of German side. The table below reflects the export/import trend between the two countries.     

  (Value in 000 Rupees)

Year	Export	Import	Trade balance
2022/23	4,356,902	6,758,647	-2,401,745
2023/24	4,452,087	7,912,722	-2,306,560
2024/25	4,463,238	6,688,792	-2,225,554

 

Investment

A bilateral investment protection agreement is in place since October 1986. Nepal Investment Board has signed a contract with DIAF industries GMBh-a Frankfurt based private company in July 2023 to carry out Detailed Feasibility study for the establishment of a chemical fertiliser plant in Nepal.

As of FY 2023/24, Germany’s FDI stock in Nepal stood at Rs.110.1 million.

 

Cultural Cooperation

Germany's Federal Foreign Office funded projects to restore sites of cultural or religious significance in Nepal, including in the cities of Patan and Bhaktapur in the Kathmandu Valley.

 

Bilateral Agreements

Nepal and Germany have signed the following agreements and MOUs:

1. Agreement on the Encouragement and Reciprocal Protection of Investments (1986)
2. Cultural Cooperation Agreement (1992)
3. Bilateral Consultation Mechanism (2019)
4. Agreement on the Gainful Occupation of the Members of the Families of the Members of a Diplomatic Mission or a Career Consular Post (2020)
5. MOU on the Continued Cooperation of the Goethe-Zentrum Kathmandu (2023)
6. Joint Declaration of Intent (JDoI) on the skilled Labour Migration and Knowledge Exchange on (2023)

Tourism and People-to-People ties

Germany has remained one of the biggest tourist source countries for Nepal. Nepal welcomes on an average 30,000 German tourists every year. Arrival of tourists from Germany is reflected in the table below:

 

Year	2025	2024	2023
No. of Tourists	30,227	29,799	26,980

 

It is estimated that the number of Nepalis living in Germany is around 11,390.

 

 

Europe Division

Ministry of Foreign Affairs

As of March 2026