Nepal signed a trade and investment framework arrangement (TIFA) with Australia on 9 February 2024 to strengthen economic ties and promote trade. The Nepal-Australia TIFA is seen as likely to benefit certain sectors in Nepal, including tourism and hospitality; the country’s emerging information and communications technology activities; and agribusiness.

Australia is Nepal’s sixth‑biggest foreign investment partner, and Nepali students’ destination of choice for higher education and vocational training. Australia is also a big contributor to the recovery of Nepal’s tourism industry. In 2023, nearly 39,000 Australians entered Nepal, making the country Nepal’s fifth‑largest source of foreign visitors. In recent years, Nepal’s services exports to Australia have soared to AU$160 million (US$105 million) from only AUS78 million prior to the 2022‑2023 period, driven by growth in travel services.