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Nepal-Kuwait Relations
Political Relations
Diplomatic relations between the Kingdom of Nepal and the State of Kuwait were established on February 25, 1972. Nepal has established new Embassy in Kuwait on 21 March 2010 and Kuwait has assured to reciprocate sooner by opening its Embassy in Kathmandu. Kuwait is now represented from New Delhi. Both countries are enjoying excellent bilateral relationships. The relations between the two countries have been based on goodwill, mutual understanding and co-operative attitude. Exchange of visits at various levels has strengthened bilateral relations between two countries.
Nepal and Kuwait have expressed avowed commitments and loyalty to the principles of the United Nations Charter and work together in the UN as well as other international fora for the common benefit of the humankind and in strengthening international peace and security. Both countries are supporting the creation of nuclear-free zones and the resolution of all problems facing the International Community by peaceful way.
Nepal's complete support for Kuwait's sovereignty, independence and territorial integrity as a first among the South Asian countries during the invasion and occupation by Iraq in 1990 has been well appreciated by the Government and the people of Kuwait.
Major Bilateral Visits
Visits to Kuwait
- Their Late Majesties King Birendra and Queen Aishwarya visited Kuwait in 1979. His Late Royal Highness then Crown Prince Dipendra paid a private visit to Kuwait in June 1997.
- His Late Royal Highness then Crown Prince also visited Kuwait to attend the Working Session of the Special General Meeting to the Asian Olympic Council from 21-25 November 1999.
- A Nepalese Parliamentary Delegation led by Hon Ram Chandra Paudel, then Speaker of the House of Representatives visited Kuwait from 15-22, January 1996.
- Nepalese Delegations led by the then Finance Ministers, Dr. Bhekh Bahadur Thapa and Hon. Mr. Bharat Bahadur Pradhan visited Kuwait in 1975 and 1989 respectively.
- Then Deputy Prime Minister and Minister for Foreign Affairs Sujata Koirala paid an official visit to Kuwait in January, 2011.
- President Dr Ram Baran Yadav, visited Kuwait in February 2011 to attend the celebrations of the 50th Anniversary of Independence, 20th Anniversary of Liberation and 5th Anniversary of ascendance of His Highness the Amir of Kuwait.
- Minister for Youth and Sports Mrs Kamala Roka also paid a short visit to Kuwait in December 2011 at the invitation of the Olympic Council of Asia which is chaired by Kuwait at the moment.
- A Delegation of Kuwait Fund for Arab Economic Development visited Nepal in March 1975. Also a four member Parliamentary Delegation of Kuwait paid a visit to Nepal in October 1993.
Completed Projects
Kuwait is the first OPEC (Organization of Petroleum Exporting Countries) country to provide soft term loan to Nepal. Economic cooperation between the two countries started with the signing of a loan agreement of Kuwaiti Dinar 5 million (UD$ 18.5 million) for Kulekhani Hydel Project in 1977. Kuwait also provided a supplementary loan of KD 2 million (US$ 7.4 million) to meet the cost overrun of the same project in 1979. Later, under an agreement signed on 25 January 1985, Kuwait provided KD 6 million (US$ 20 million) for civil works on consultancy of the Marsyangdi Power Project.
An agreement for a loan amounting to KD 1.5 million (US$ 5.05 million) was also concluded on 26 October 1998 for the execution of Praganna Kulo Irrigation Project in Dang district. The loan was used for the construction and rehabilitation for irrigation canal and its intakes.
Ongoing Projects
The Kuwait Fund for Arab Economic Development has agreed to extend technical assistance of KD 2,00,000 (USD 7,20,000) for the feasibility study of Sitapaila-Dharke Road Project which will be followed by a soft-term loan assistance to complete the Project and it has also assured of its full cooperation for the execution of Budhiganga Hydro-Power Project in Achham. In principle, Kuwait has assured of helping two projects every year; one for technical assistance and another for complete implementation.
Economic Relations
Trade and Business
The Trade between Nepal and Kuwait has remained in favour of Kuwait. Nepal exported items of around NRs.77 million in the period of 2010/11 (source: TEPC). The major export items included cereals, starch and ready-made garments etc. At the same period, Nepal imported petroleum products, Polyethylene, Colour Television, and Gold Unwrought etc of around NRs. 182 million. The trade deficit stands at around NRs 105 million. Nepal has escalating gap of trade deficit with Kuwait. There is no visible direct export trade from Nepal now although few Nepali products are available in the retail market.
Tourism
Tourism can be one of the potential areas in the development of Nepal-Kuwait relations. Nepal can become a destination for the local population who visit abroad during the summer. The present trend shows that Kuwaitis are more interested in spending their holidays in Asia changing their traditional destinations in the West and US. There is a need for increasing direct flights to Nepal keeping in view the increasing traffic. Similarly, Nepal has tremendous scope for eco-tourism. Family tourism for a longer duration is another way to attract the Kuwaitis because of its climate.
Investment
Kuwaitis, mainly the private sector entrepreneurs, are interested in investments in big projects in the hydropower and tourism sector in Nepal. The Nepalese private sector needs to come forward with concrete and viable proposals.
Air Links
There is no direct air link between Nepal and Kuwait now. However, the Kuwaiti side has assured to start a direct flight of the Kuwait Airlines in the near future.
Agreements
- An Agreement was signed between Nepal and Kuwait to establish a Joint Commission at the Level of Foreign Ministers to cover the entire gamut of bilateral relations
- Air Services Agreement
Kuwait issues two types of Visas for all the expat workers; Visa no 18 for the corporate sector workers and Visa no 20 for domestic workers. The domestic workers are not covered by the Labour Law of Kuwait and they include housemaids, house-boys, house-drivers and some other categories who work in the household only. Demand for workers from Nepal in different areas under Visa no 18 has increased after the opening of the Embassy.
Nepalese Community
In recent years, Kuwait has become one of the attractive destinations for the Nepalese workers. The number of Nepalese nationals working in Kuwait is increasing day by day. The official data of Kuwait now stands at around 50,000, but it is estimated that the number has crossed 60,000, of which the number of female workers alone stands at around 35,000 including over 23,000 illegally trafficked ones since 2 decades at different times. Nepal has no confirmed statistical data of workers in Kuwait since majority of them had entered Kuwait without the official clearance and approval of the Government.
The goodwill and friendly behaviour towards Nepalese nationals in Kuwait has contributed to the influx of Nepalese nationals. The remittance received from Nepalese nationals working in Kuwait contributes substantially to the economy of Nepal. However, there are also complex issues related to the proper management of the various problems faced by the Nepalese expatriates; ranging from malpractices in recruitment at home to the exploitation at different levels due to lack of coordination among the concerned agencies within Nepal and provision of appropriate and swift legal protection to foreign workers. The plights of female workers, particularly, the housemaids are of utmost concern requiring effective monitoring and coordination among all stakeholders, both within the country and abroad.
09 January, 2012
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Hon. Deputy Prime Minister and Minister for Foreign Affairs
Narayan Kaji Shrestha 'Prakash'
Foreign Secretary
Durga Prasad Bhattarai
Office of the Deputy Prime Minister and Minister for Foreign Affairs Diplomatic Code of Conduct 2011
Kutnitik Aachaar Sanhita, 2068 Diplomatic List 2011