Political Relations

Diplomatic relations between Nepal and the Federal Republic of Germany were established on 4 April 1958. Since then the relations between Nepal and Germany have been growing on the foothold of friendship, mutual understanding and cooperation.

Both the countries have established residential Embassies in each other's capital cities. Nepal established its Embassy on 05 July 1965.  The Federal Republic of Germany has its Embassy in Kathmandu since 1963.

65^th Anniversary of Diplomatic Relations

The year 2023 marked as the 65th anniversary of the diplomatic relations between Nepal and Germany. Various programmes were organised by both sides to commemorate the occasion.

Exchange of visits/High level meetings

Exchange of visits and regular contact especially at high levels have contributed to strengthening the close and cordial relations between the two countries. Visits from Nepali side include the visits of the head of the state, heads of the governments, foreign ministers, other government ministers and high-level dignitaries. Likewise, the visits from the German side include the visits of the head of the state, head of the government and other high-level dignitaries mostly the German Federal parliamentarians.

The Rt. Hon. President, Mr. Ramchandra Paudel paid an official visit to Germany on 15-18 June 2024. Similarly, the Minister for Foreign Affairs Hon. Dr. Arzu Rana Deuba visited Germany on 15-18 December 2024. Hon. Foreign Minister Dr. Rana Deuba also held a meeting with her German counterpart H.E. Annalena Baerbock on the sidelines of UNGA in September 2024 in New York.

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

From the German side:

Dr. Renate Kuenast, Chair of the South Asian Parliamentary Committee in the German Bundestag visited Nepal in February 2023 leading a parliamentary delegation.

Parliamentary State Secretary Dr. Barbel Koefler visited Nepal in November 2022. His delegation included members of the German Bundestag and officials of BMZ.

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 Presidents Heinric Luebke (in 1967) and Prof. Dr. Roman Herzog (1996), Federal Chancellor Helmut Kohl (in 1987) and Vice President of German Parliament Mrs. Claudia Roth (in 2017).

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 on 16 July 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 Mechanism was operationalized with the convening of its first meeting on the same date the agreement was signed. The Mechanism held its third round of consultations in March 2024 in Kathmandu.

Parliamentary Cooperation

With the view to further expanding the Nepal-German relations through engagements at the parliamentary front as well, a six-member Nepal-German Parliamentary Friendship Group was constituted in the Nepal’s Federal Parliament in December 2024.

Development cooperation

Germany is one of the major partners for Nepal’s development efforts. 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.

Taking cognizance of the political development and peace process since 2006, the German government has significantly increased its funding for development cooperation to Nepal. Germany supported the peace process through advisory activities and participation in the Nepal Peace Trust Fund.

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

Ongoing cooperation

Nepal and Germany has signed two separate agreements: A Financial Cooperation Agreement of 35 million Euros and a Technical Cooperation Agreement of 21 million Euros in January 2024. The Financial Agreement will support for the private and public sectors to expand energy transmission lines, promote solar energy, improve maternal and child care in remote areas and promote gender equality in Nepal. Similarly, the Technical Cooperation Agreement will support for the gender equality and social inclusion, local and provincial economic development, revenue administration, renewable energy etc. In addition to this, the German government has also agreed to mobilize 51 million euros in grant aid, including financial and technical assistance, for the next two years for the development of Nepal's economic and social sectors.

Cooperation in the aftermath of Earthquake 2015

Following the earthquakes in 2015, the Federal Foreign Office of Germany provided immediate relief equivalent to EUR 3.5 million (plus EUR 1 million also from BMZ) through various channels, especially the INGOs.

The German Government pledged the support of EUR 30 million for reconstruction works to be spent under the declared priority sectors, mainly in health sector. It was estimated that around EUR 120 million was mobilized by the NGO and private sector to support the earthquake affected people.

Labour Agreement:

Nepal and Germany signed a Joint Declaration of Intent on the skilled Labour Migration and Knowledge Exchange in October 2023. Necessary preparation are underway on both sides to implement the Agreement.

Trade and Investment

Germany is Nepal's fourth largest export trading country after India, US and Turkey.

A bilateral investment protection agreement is in place since October 1986.

Founded in 1990, the Nepal-German Chamber of Commerce and Industry (NGCCI) in Kathmandu promotes bilateral trade relations.

Besides carpet, the major export item to Germany, the other export items to Germany include handicraft, woollen shawl silver jewellery, garments, leather, wooden and bamboo goods, lentils, tea, essential oils from herb and aromatic plants. Similarly, Nepal mainly imports safety razor blades, Hemodialysis Machine, Dialysis Re-processor, dylisier tubing, video-scope cathlab 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 USD ‘000’

Source: TEPC

Investment

There has been gradual increase in German Private Investment. Nepal Investment Board has signed a contract with DIAF industries GMBh-a Frankfurt based private company in July 2023 to carry our Detailed Feasibility study for the establishment of a chemical fertilizer plant in Nepal.

As of July 2023, there were 116 projects with total German FDI of NRs. 1461.72 million generating employment opportunities for 4882 people.

Cultural Cooperation

Germany's Federal Foreign Office has funded projects to restore sites of cultural or religious significance in Nepal, including in the cities of Patan and Bhaktapur in the Kathmandu Valley. German archaeologists have also done important research work through their excavations.

A Cultural Cooperation Agreement between Nepal and Germany was signed in August1992. Similarly, a MoU on the continued operation of Goethe-Zentrum Kathmandu has been signed in February 2023.

Tourism and People-to-People ties

Germany remains among the biggest tourists-source countries for Nepal. Nepal receives over 25,000 tourists every year. Similarly, approximately 10,000 Nepali are estimated to be living in Germany. The German tourists visiting Nepal and the presence of a vibrant Nepali community in Germany have served as the strong linkage between the two countries.

Europe America Division

Ministry of Foreign Affairs

January 2025