NEPAL-AUSTRALIA RELATIONS

Political Relations

Diplomatic relations between Nepal and Australia were established on 15 February 1960. Ever since, the relationship between the two countries has remained warm and cordial marked by mutual respect, mutual support, mutual understanding, and close cooperation. Australia opened its residential Embassy in Kathmandu at the level of chargé d’Affaires in 1984 which was upgraded to the Ambassadorial level in 1986. Nepal established its residential Embassy in Canberra in March 2007 which was formally inaugurated in September 2007. In addition, Nepal also has Honorary Consulates General/Consulates in Brisbane, Melbourne, Sydney, Perth and Adelaide. The year 2025 marks the 65^th anniversary of the establishment of formal diplomatic ties between our two countries.

Over the years, relations between our two countries have been deepening and expanding in various areas including political, economic, cultural as well as at people’s level. The Australian Government and private sector have contributed to the socio-economic development of Nepal through assistance in the fields of health, education, hydroelectricity, sustainable management of forest, agriculture, strengthening governance and service delivery, civil aviation, and livestock management.

Relations at the parliamentary level have also been growing steadily. Nepal-Australia Parliamentary Friendship Group has been formed.  The group is chaired by Nepali Congress leader, Hon. Gagan Kumar Thapa. Similarly, Australia-Nepal Parliamentary Friendship Group co-chaired by Mr. Peter Khalil MP (Australian Labour Party) and Senator Andrew Bragg (Liberal Party of Australia) was formed in February 2023.

Exchange of visits

In recent years, exchange of visits at various levels have gained momentum which is critical for consolidation of relations and identification of new areas of cooperation.

• Rt. Hon. Ganesh Prasad Timilsina, Chairperson of the National Assembly of Nepal, leading high-level parliamentary delegation, visited Australia from 27 November to 2 December 2023.
• An Australian parliamentary delegation led by the Hon. Milton Dick, MP, Speaker of the Australian House of Representatives, visited Nepal on 3-7 October 2023.
• Foreign Minister Hon. Narayan Prakash Saud visited Australia on 8-13 February 2024 to participate in the Indian Ocean Conference. He also held bilateral meeting with Senator the Hon. Penny Wong, Minister for Foreign Affairs of Australia at Perth, Australia on 9 February 2024.
• Hon. Tim Watts, MP, Assistant Minister for Foreign Affairs of Australia paid an official visit to Nepal on 16-17 May 2023.

• Foreign Secretary Mr. Bharat Raj Paudyal, leading a delegation, visited Australia from 28 August to 2 September 2022 to participate in the second meeting of Nepal- Australia Bilateral Consultation Mechanism.

Bilateral Consultation Mechanism

Nepal and Australia signed an MoU on establishing a Bilateral Consultation Mechanism (BCM) between the Ministry of Foreign Affairs of Nepal and the Department of Foreign Affairs and Trade of Australia on 14 July 2017 in Canberra, Australia. Foreign Secretary Mr. Shanker Das Bairagi and Acting Secretary, Department of Foreign Affairs and Trade of Australia H.E. Mr. Gary Quinlan signed the MoU on behalf of their respective Governments.

The first meeting of the BCM was held in Kathmandu on 15-17 August 2018. The Australian delegation was led by Assistant Secretary Mr. Andrew Collins and the Nepali delegation was led by Joint-Secretary Mr. Tapas Adhikari.

The second meeting of the Nepal-Australia Bilateral Consultation Mechanism was held on 30 August 2022 in Canberra, Australia. Foreign Secretary Mr. Bharat Raj Paudyal and First Assistant Secretary of Australia H.E. Mr. Gary Cohan led their respective delegations to the meeting. The establishment of the BCM has opened an avenue for discussion and exchange of views, on a regular basis, on bilateral, regional and international issues of mutual interests as well as for exploring new areas of cooperation between Nepal and Australia.

Economic and Technical Cooperation

Australia is an important development partner of Nepal. Australia’s assistance to Nepal is delivered through the Government of Nepal and in partnership with other donors and multilateral organizations. Priority areas for Australia’s development assistance to Nepal are in line with Nepal’s poverty reduction strategy and include basic education, health, livelihoods, strengthening and improving governance, peace building and human resource development. Australia has also been supporting Nepal in its endeavour to human resource development by providing scholarships. Community forestry under Australian aid was a big success story that both of the countries can be proud of.

In recent years, Australian support is more focused on enriching local governance, education and micro-enterprise development.

Trade Relations

Bilateral trade between Nepal and Australia has been growing over the years. Australia was the eighth largest export destination and the seventh largest import destination for Nepal in the FY 2080-81 B.S. However, the balance of trade has been skewed in favour of Australia.

In Billion Rs.

Source: www.tepc.gov.np      

Implementation of Trade and Investment Framework Arrangement (TIFA) between the two countries is expected to be helpful in bridging such a widening gap.

Nepal exports readymade garments, carpets, woollen felt products, uncooked pasta, dresses of cotton, green tea, percussion musical instruments, spirits, ornaments, hemp, paintings, drawings, etc. and imports smartphones, lentils, parts of aircraft engines, smart watch, laptops etc.

Foreign Direct Investment

Australia is the eleventh largest investor in terms of the number of industries approved for foreign investment in Nepal. Up to FY 2022/23, there is Australian investment in 79 different industries amounting to Rs. 1558.85 million which generate 2,305 job opportunities in Nepal.

(Source: Department of Industries, GON, Industrial statistics 2022/23)

Tourism

Nepal continues to be a country of attraction for Australian tourists. Number of tourists from Australia is in increasing trend. The arrival figure of Australian tourists in Nepal for the last three years is as follows: 

Important Agreements

Nepal and Australia have signed some important agreements. Some key agreements are:

1. MoU between the Ministry of Foreign Affairs of the Government of Nepal and The Department of Foreign Affairs and Trade of the Government of Australia on the Establishment of Bilateral Consultation Mechanism signed on 14 July 2017
2. Air Service Agreement signed on 30 September 2019
3. Memorandum of Understanding on Water Resource Management signed on 30 August 2022
4. Trade and Investment Framework Arrangement (TIFA) signed on 9 February 2024

People to people relations

People-to-people connectivity is a major hallmark of our ever-growing bilateral relations and cooperation. Indeed, this is a strong pillar of our relations. Around one hundred eighty thousand Nepali nationals have chosen for their education, employment and residence. After China and India, Nepal is the third major source country for sending students to Australia. Currently, more than 60,000 Nepali students are studying in Australia. Nepali diaspora, indeed, have significantly contributed to the economies of both the countries and to bring two countries and peoples closer.

South East Asia and the Pacific Division
Ministry of Foreign Affairs
Singha Durbar, Kathmandu
As of January 2025