Nepal and the Republic of Paraguay established diplomatic relations on 2 August 2006. The Embassy of Nepal in Brasilia, Brazil USA is currently accredited to the Republic of Paraguay and Embassy of the Republic of Paraguay in New Delhi, India is accredited to Nepal.
Nepal’s relations with Paraguay are marked by friendship, mutual respect and understanding. Contacts between the two countries primarily take place in the international forums such as the United Nations. Paraguay and Nepal have shared common concerns in many international meetings and conferences as land-locked and developing countries. As active members of the NAM and G-77, both countries have been advocating the just cause of the developing world. Paraguay has strategic importance due to its central location in South America.
Trade and investment
The volume of bilateral trade is moderate and in favor of Paraguay at the moment. Some of the commodities imported by Nepal from Paraguay are oils, seeds, colza seeds, oil cakes etc. Nepal exports coffee, tea and carpet and other textile floor covering. Trade volume between the two countries for the last few years is shown in the table below:
In USD
| Year | Export | Import | Balance |
| 2015 | 29066 | 25371394 | -25342328 |
| 2016 | 5036 | 30067822 | -30062786 |
| 2017 | 1999 | 21010819 | -21008820 |
| 2018 | 0 | 8991491 | -8991491 |
| 2019 | 0 | 1932271 | -1932271 |
(Source: TEPC)
As of July 2019, one project under the Republic of Paraguay’s investment is in operation with an investment of Rs. 5 million which has created 16 jobs in Nepal.
August 2020