Last Updated: May 12, 2010

Bilateral Relations

Nepal-Australia Relations


Nepal and Australia celebrated 50 years of diplomatic relations in 2010. Nepal’s relationship with Australia predates the establishment of diplomatic links in 1960. Over the years, the Australian Government and private sector have contributed to the economic and social development of Nepal through assistance in the fields of health, education, hydroelectricity, sustainable management of forest, civil aviation, and livestock management.

Though Nepal and Australia established Diplomatic Relation on 15 February 1960, Australia established its Embassy in Kathmandu in 1984 and Nepalese Embassy was opened in Canberra in 2007.

Exchange of visits

From Nepalese Side
  1. Late King Mahendra and former Queen Ratna of Nepal paid a State Visit to Australia in 1971.
  2. Late King Birendra and Queen Aishwarya paid a State Visit to Australia in September 1985.
  3. Late King Birendra and his wife (then Their Royal Highnesses Prince and Princess) paid a visit to ‘World Expo ‘88’ held in Brisbane to grace the Nepal Day Celebration in September 1988.
  4. Late Crown Prince, Dipendra Bir Bikram Shah visited Australia during the Summer Olympic Games which was held in Sydney from September 10 to October 02, 2000.
  5. Former Prime Minister Mr. Sher Bahadur Deuba visited Australia in February 2000
  6. A Nepalese Parliamentary delegation led by the Rt. Hon. Speaker Mr. Tara Nath Rana Bhat visited Australia in March 2000.
From the Australian side,
  1. Parliamentary Secretary for International Development Assistance, Bob McMullan MP, visited Nepal from 25-27 April 2010 to celebrate the 50th Anniversary of the establishment of diplomatic relations between Nepal and Australia.
  2. Australia's Governor General John Kerr visited Nepal in 1975 to attend the auspicious Coronation Ceremony of late King Birendra.
  3. The then Foreign Minister of Australia Bill Hayden visited Nepal in May 1985.

Development Cooperation
Australia's development cooperation program in Nepal began in the 1960s. Australia will provide an estimated $26.6 million in total official development assistance to Nepal in 2011-12 focusing on health, education and strengthening governance and peace-building. Australia funded through international financial institutions like the World Bank and the Asian Development Bank. Australia continues to provide cooperation to Nepal in the fields of Forestry, Livestock Development and Manpower Training.

Technical Cooperation
A number of Nepalese high officials go to Australia to get training and higher studies under scholarships.

Economic Relations
Two-way merchandise trade in 2010-11 totaled Rs. 1360 million with imports from Australia to Nepal valued at Rs. 1060 million.

Trade Relations
Nepal exports clothing, floor covering, carpet, cotton dress, paintings and pastels to Australia and imports refined petroleum and vegetables. There is growing volume of trade with Australia which occurs in trade deficit to Nepal.

Value in ‘000 Rs.

FY 2007/08

FY 2008/09

FY 2009/10

Export

Import

Balance

Export

Import

Balance

Export

Import

Balance

175,860

1,750,986

-1,575,126

422,743

2,283,158

-1,860,415

333,140

4,950,297

-4,617,157

Source: Trade Promotion Centre, GON, 2009/10

Tourism
Nepal continues to be a country of attraction for Australian tourists. The arrival figure of Australian tourists in Nepal for the last three years is as follows:
By Air

Year

January-November

2008

2009

2010

2010

2011

11,989

13,327

14,211

12,724

14,477

Source: Nepal Tourism Board, GON,2010/11

Foreign Direct Investment
Australia has also invested in 34 different industries, service sectors and other fields amounting to Rs. 395.22 Million which generates 974 job opportunities. Foreign Direct Investment invested by Australia in Nepal stands as follows:
Rs. in Million

FY 2008/09

FY 2009/10

FY 2010/11

Total Investment upto now

Investment

Ind.

Jobs

Investment

Ind.

Jobs

Investment

Ind.

Jobs

NA

NA

NA

26.05

5

124

38.40

18

369

395.22

Source: Department of Industries, GON,2067/68


Dynasty Aviation Private Ltd is operating helicopter services with an Australian investment capital of Rs. 56.82 million. Department of Electricity has recommended a license to Australian company Pacific Hydro Ltd to conduct survey of the 51 megawatt Likhu-4 hydro-electricity project.
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