Overview

Nepal is a Himalayan country in South Asia situated between India and China. It has a population of about 30 million and contains eight of the world's ten highest peaks, including Mount Everest the highest mountain in the world. Kathmandu is its capital and largest city.

There were 142 ethnicities according to its National Census in 2021, and 123 spoken languages in Nepal. While Hinduism and Buddhism are represented by 90 per cent of the population, Nepal's constitution is secular. The country is religiously diverse. Other religions practised in Nepal include Islam, Christianity, Kiratism, Sikhism, Om Shanti, and Jainism.

Bilateral relations

Australia and Nepal established diplomatic relations in 1960. Our relationship is built on a long-standing history of development partnership and close people-to-people links.

Australia and Nepal share democratic values, a commitment to a peaceful, stable and prosperous Indo-Pacific region.

A Trade and Investment Framework Arrangement (TIFA) was signed on the margins of the Indian Ocean Conference in February 2024.

High-level visits and meetings

Recent bilateral visits and meetings include:

• February 2024: Then-Nepal Foreign Minister Saud's official visit to Australia. He met Foreign Minister Penny Wong and Assistant Foreign Minister Tim Watts to discuss regional issues and growing bilateral relations. The Foreign Ministers witnessed the signing of a new Trade and Investment Framework Arrangement (TIFA), a milestone to increase economic engagement and commercial ties.
• May 2023: Assistant Foreign Minister Tim Watts' visit to Kathmandu was the first ministerial visit to Nepal since Foreign Minister Bill Hayden in 1985.  He met with Nepal's Prime Minister Dahal, then Foreign Minister Saud, a wide range of business, civil society, alumni, students, academia, community, cultural and religious leaders, and extended consular outreach.
• October 2023: Speaker of the House of Representatives Milton Dick led a first Australian parliamentary delegation visit to Nepal. The delegation engaged with a range of Nepali senior politicians and interlocuters on good parliamentary practices and governance, and on Australia's development cooperation with Nepal.
• November-December 2023: Australia welcomed the first Nepal parliamentary delegation on a study visit on governance arrangements.
• November-December 2023: Sunita Dangol, Deputy Mayor of Kathmandu Metropolitan City, visited Australia under the Special Visits Program. She gained an understanding of Australia's policies and institutions, women's rights, indigenous issues, creative arts, urban planning, and judicial issues.  She met federal members of parliament, the ACT Chief Minister, deputy mayors, local representatives, officials, private industry, and academia.

Economic and trade relations

Australia’s two-way trade with Nepal was valued at $4.9 billion in 2024. It ranked as our third largest trading partner in South Asia.

As Australia's third largest source of international students, Nepal is our seventh largest services exports market with education-related travel services valued at $4 billion in 2024.

Australia imported $351 million worth of goods and services from Nepal in 2025, mostly in recreational travel. The TIFA signed in February 2024 provides a framework to grow the trade relationship.

For information on Australia’s goods and services trade with Nepal and its global merchandise trade relationships, refer to the Nepal country fact sheet [PDF].

People-to-people links

Nepal-born people living in Australia is one of Australia's fastest growing migrant communities and play a vital role contributing to Australian society and the bilateral relationship. There were around 213,580 Nepal-born residents as at June 2025, according to the Australian Bureau of Statistics, as well as 56,016 international students from Nepal for the January-February 2026 period.

Australian remittances, approximately US$466.6 million in 2021, provide strong support to Nepal's economy.

Development program

In 2026-27, Australia will provide an estimated $23.7 million in Official Development Assistance. Australia supports Nepal's transition to a middle-income country and its contributions to a prosperous and stable Indo-Pacific region.

The Subnational Governance Program (SNGP) supports Nepal's transition to federalism through institutional capacity building. It clarifies functions among the different levels of government – local, provincial, and federal – facilitates dispute resolution related to the roll out of federalism, and promotes inclusive decision-making and service delivery.

Australia shares lessons and expertise in areas of mutual interest such as river basin planning and governance, the energy-water nexus, climate change and disaster risk reduction. Through programs with the Australian Water Partnership and the UN Capital Development Fund, Australia is supporting stronger systems for performance-based climate financing for local level adaptation activities and strengthening integrated water management.

Under our partnership with the International Centre for Integrated Mountain Development (ICIMOD), Australia helps build capabilities for green, inclusive and climate resilient development of the vulnerable communities in the Koshi River Basin.

Under the Australian NGO Cooperation Program, Australian NGOs in partnership with local organisations are delivering 38 projects in Nepal in areas such as: communicable diseases, disability, disaster risk reduction, economic development, education, eye health, food security, gender, health, human rights, livelihoods, microfinance and rural development.

The Australian Centre for International Agricultural Research (ACIAR) and CSIRO are active in Nepal, focusing on increasing farm and forest productivity for better food and nutrition security and livelihoods, improved integration of soil, water, crop, livestock and forestry components of farming systems and river basin management.

Since 2009, over 389 Australia Awards Scholarships have been awarded to Nepali scholars. 

Political overview

Nepal is a Federal Democratic Republic with a President as Head of State and a Prime Minister as Head of Government. The current constitutional arrangements were established under Nepal’s 2015 Constitution, following the abolition of its 240-year-old monarchy in 2008 by the newly elected Constituent Assembly. This followed a decade-long civil war from 1996 to 2006 and a broader political transition toward republican federal democracy.

Nepal – Heads of Government listing

Human Rights

Australia is strongly committed to advancing the global protection and promotion of human rights through our bilateral relationships, development assistance and engagement with civil society, as well as our engagement in regional and multilateral fora.

Australia engages Nepal on a range of human rights issues, including refugees, transitional justice, human trafficking, freedom of expression and modern slavery, and LGBTQIA+ issues. Australia is Co-Chair of the Refugee Core Group in Nepal, which leads international community cooperation and advocacy.