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Nepal-Austria Relations
Political Relations:
Nepal and Austria established diplomatic relations on August 15, 1959. Royal Nepalese Ambassador to the Federal Republic of Germany is concurrently accredited to Austria. Similarly, Austrian Ambassador to India is concurrently accredited to the Kingdom of Nepal. Relations between the two countries are marked by friendship, cordiality and mutual understanding. Nepal and Austria have common perception on matters relating to international peace, harmony and stability. Both are land-locked countries and face similar problems. As peace-loving nations, both Nepal and Austria are regular troop contributors to the United Nations peace-keeping operations. Both of them are contributing to the maintenance of peace and stability in their respective regions and the world at large.
Visits:
The exchange of visits at different levels has played a major role in promoting friendship and better understanding between the two countries. The Minister of State of Economic Cooperation of Austria Dr. Adolf Nussbauner visited Nepal in 1978. The visit provided an opportunity to discuss and explore the areas of economic cooperation between Nepal and Austria.
Dr. Kurt Waldheim, who later became the President of Austria in 1990, paid a visit to Nepal in his capacity as the Secretary General of the United Nations in 1981. Mr. Alois Mock, Minister for Foreign Affairs of Austria, paid an official visit to Nepal from February 9 to 11, 1990 just a few days before the restoration of multi-party system in Nepal.
Their Late Majesties King Birendra and Queen Aishwarya paid an unofficial visit to Salzburg, Austria, in 1986 on the way to the Federal Republic of Germany on a State Visit. Similarly, on their way to the State Visit of France in September 1994, Their Late Majesties King Birendra and Queen Aishwarya paid a visit to the Styrian province of Austria. During the visit, Their Late Majesties had also talks with the Austrian Chancellor in Vienna.
While on way home from London, where His Late Majesty King Birendra underwent a regular health check up, Their Late Majesties the King and Queen made a brief private visit to Austria in July 2000. In this connection, His Late Majesty the King had a meeting with the Austrian President Dr. Thomas Klestil at Hofburg Palace in Vienna on July 17, 2000. Her Late Majesty the Queen and Mrs. Margot Klestil Joffler, the spouse of President Dr. Klestil, were also present on the occasion.
The then Rt. Hon. Prime Minister Girija Prasad Koirala led the Nepalese delegation to the Human Rights Conference in Vienna, Austria, in June 1993. During his stay, he met with various Austrian leaders and exchanged views on matters of mutual interest. This visit has been fruitful in further consolidating the relations between the two countries.
Their Royal Highness the Crown Prince and Crown Princess paid an official visit to the Republic of Austria from March 20 to 26, 2006 at the invitation of the Federal Chancellor His Excellency Dr. Wolfgang Schuessel. During the visit, Their Royal Highnesses participated together with His Excellency Vice- Chancellor in a hand-over ceremony of a pair of Rhinoceros unicornis, one horned Rhino, gifted by His Majesty King Gyanendra Bir Bikram Shah Dev to the friendly Government and people of Austria. The visit of Their Highnesses has added further impetus in enhancing bilateral relations between Nepal and Austria.
Austrian Consulate in Kathmandu functions on behalf of the Austrian Embassy on matters such as visa, scholarship, trade, etc. Similarly, there is an Honorary Royal Nepalese Consul in Vienna to look after the consular interests of Nepal.
Economic Relations
A. Tourism
As the Austrians are avid mountaineers, there is a strong bond of friendship between Nepal and Austria. Many famous Austrian climbers have scaled the Himalayan peaks of Nepal. A significant number of tourists arrive in Nepal from Austria each year for various purposes. In 2001, 3,806 tourists from Austria visited Nepal. The growth in the number of Austrian tourists may be attributed to the operation of Austrian Airlines flight from September 24, 1998 connecting Kathmandu directly with Vienna.
Tourist arrival from Austria
| Year |
No. of Tourist |
| 2001 |
4164 |
| 2002 |
3140 |
| 2003 |
3025 |
| 2004 |
4341 |
B. Trade
The balance of trade with Austria for the last few years has remained unfavourable for Nepal. The following trade figures reflect the trade transactions of Nepal with Austria for the last few years.
| Value in '000 Rs. |
| Year |
Export |
Import |
Trade Balance |
| 1998/99 |
330,900 |
255,472 |
+75,428 |
| 1999/00 |
187,516 |
96,022 |
+91,494 |
| 2000/01 |
160,067 |
181,387 |
-21,320 |
| 2001/02 |
122,311 |
206,679 |
-84,368 |
| 2003/04 |
89,374 |
368,690 |
-279,316 |
| 2004/05 |
101,828 |
141,484 |
-39656 |
The major exports to Austria are Nepalese paper and paper products, woollen carpets, handicrafts, ready-made garments, and silverware and jewellery. Likewise, Nepal's major items of import from Austria in terms of value are malt, machinery and parts, telecommunications equipment, postal stamps & imitation jewellery from Austria.
C. Joint Venture
A few industries in the areas of wax carbon paper, sausage, ready-made garments, and restaurant have been operating under joint venture with the private sector of Austria. The Austrian investors have invested Rs. 48.86 million in the industries in Nepal as at 2005.
Development Cooperation
Austria has been providing financial assistance for various development projects in Nepal. Its major focus is on the areas of hydro-electricity, conservation of ancient temples and drinking water. Environmentally sound development of rural areas and tourism development continue to be the priority areas for Austrian cooperation. Development of environmentally sound rural areas and tourism continues to be the priority areas for Austrian cooperation.
An agreement was signed on 27 December 1990 between Government of Nepal and the Government of Austria for a loan assistance of Austrian Schilling 60 million to Nepal. This loan assistance was utilized for the procurement of drinking water pipes.
Scholarships
Austrian Government annually offers a number of scholarships on tourism management, hotel management, limnology (study of physical phenomena of lakes and other fresh waters) and various other subjects.
Miscellaneous
An agreement on the Avoidance of Double Taxation between Nepal and Austria was signed on December 15, 2000. The agreement has been in effect since November 2001 after both Nepal and Austria completed necessary formalities.
Europe America Division
Ministry for Foreign Affairs
Government of Nepal
Last updated on April 3, 2006
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