NU
Fri, 18 July 2025
Kathmandu/London – Nepal and the United Kingdom are actively strengthening their enduring bilateral relationship. This concerted effort is marked by a recent surge in parliamentary engagement, a sharpened focus on economic cooperation, strategic investment, and, significantly, the growing mobility of Nepali students.
This multifaceted partnership builds upon a history spanning over two centuries, a connection forged through shared experiences and evolving diplomatic ties.
Formal relations between Nepal and the UK trace back to 1816, following the Anglo-Nepalese War and the Treaty of Sugauli. A notable outcome of this treaty was the provision for recruiting Gurkha soldiers into the British East India Company's army, a tradition that has continued for over 200 years.
The UK holds the distinction of being the first nation globally to establish an embassy in Kathmandu. Similarly, Nepal later opened its inaugural diplomatic mission abroad in London in 1934.
The relationship was further formalised by treaties in 1923 and 1950, solidifying recognition of Nepal's independence and broadening cooperation.
Recent efforts underscore a contemporary emphasis on deepening these historical bonds. On Thursday, 17th July 2025, the Nepal–United Kingdom Parliamentary Friendship Group convened in Kathmandu.
Discussions during this meeting primarily centred on exchanging policymaking experiences and promoting increased bilateral investment across various sectors.
Reports from the gathering indicated a shared understanding with the Westminster Foundation for Democracy. This aims to facilitate the exchange of parliamentary practices and policymaking processes between the two nations.
Concurrently, an agreement with the Nepal–Britain Chamber of Commerce seeks to pinpoint potential investment opportunities. This initiative aims to foster stronger economic partnerships through direct parliamentary channels. These recent engagements build upon earlier commitments made in May 2025 by the same parliamentary group to enhance its activity and effectiveness.
A significant and increasingly influential aspect of the bilateral relationship is the growing number of Nepali students opting for higher education in the UK. This trend reflects the UK's appeal, driven by its world-class education system, shorter course durations, and valuable post-study work opportunities.
For many Nepali families, the UK represents a highly regarded destination for academic pursuits. It is often seen as a pathway to enhanced career prospects and a better quality of life. Official data from March 2024 indicated over 9,000 Nepali students received study visas for the UK, with projections for 2025 suggesting a significant increase. This surge is partly influenced by changing visa policies in other traditional study destinations.
This academic migration impacts the bilateral relationship on several fronts. From a foreign policy and diplomatic standpoint, these students serve as invaluable cultural ambassadors. Their presence strengthens people-to-people connections, fostering a deeper understanding and appreciation of each other's cultures.
They contribute to a vibrant multicultural environment in the UK. Upon their return, they can act as crucial bridges for future collaborations in business, diplomacy, and academia, leveraging their global training and networks.
Scholarship programmes, such as Chevening and Commonwealth Scholarships, further exemplify the UK's commitment to Nepal's human resource development. This directly integrates education into diplomatic initiatives.
Economically, the influx of Nepali students contributes significantly to the UK's services export sector through tuition fees and living expenses. While this represents a financial outflow from Nepal, the potential for skilled Nepalis to gain international work experience via the Graduate Route visa, and eventually return with enhanced capabilities, offers long-term benefits to Nepal's development. This dynamic financial and human capital flow forms a tangible economic aspect of the bilateral ties.
Economically, the UK continues to be an important trading partner. A UK Trade and Investment Factsheet released on 19th June 2025, showed total trade in goods and services between the two nations reached £288 million by the end of Q4 2024.
More recently, on 5th July 2025, Nepali officials in London actively encouraged British investors to consider Nepal's burgeoning Information Technology (IT) and energy sectors. They highlighted the nation's ongoing economic and policy transformations, including its emerging status as a power-exporting country.
The British Ambassador to Nepal has reaffirmed the UK government's commitment to supporting green growth. This includes initiatives such as a $60 million green bond programme channeled through British International Investment (BII), designed to support climate financing projects and Nepal's energy transition.
Furthermore, in August 2024, Nepal and the UK formalized two substantial grant agreements, collectively valued at approximately £6.5 billion (around Rs 13 billion Nepali Rupees). These grants are specifically allocated for programmes focused on climate resilience, adaptation, inclusion, and strengthening local government capacities to enhance gender and human development outcomes across various provinces.
These continuous interactions highlight a mutual commitment from both countries to deepen their historical ties. They are increasingly focusing on legislative exchange, fostering greater economic collaboration, and recognising the dynamic role of educational migration in shaping a more comprehensive and robust partnership.
From historical bonds and academic aspirations to future-focused economic growth, Nepal and the UK are charting a renewed course for partnership.
