Foreign Minister Shishir Khanal met Australian Ambassador to Nepal Simon Ernst on Thursday, October 1, 2026, to discuss post-flood recovery efforts and strengthening bilateral relations between the two countries.
During the courtesy call at the Ministry of Foreign Affairs, Nepal’s foreign policy body, Minister Khanal expressed gratitude to the Australian government for its continuous support, solidarity, and assistance following the devastating Bhote Koshi flood. The flood, which occurred on Bhadra 10 (August 26, 2026), caused widespread destruction across Nepal.
Khanal emphasized Nepal’s expectation for continued partnership in reconstruction and rehabilitation efforts. He also urged cooperation in accessing financial assistance for the significant losses and damages incurred from the disaster.
Ambassador Ernst reiterated Australia’s commitment to supporting Nepal’s post-disaster recovery and reconstruction. He also pledged practical cooperation to enhance Nepal’s disaster resilience. The meeting further included discussions on strengthening the overall Nepal-Australia relationship, with Ernst committing to the Australia Awards scholarships and bolstering people-to-people ties between the two nations.
Devastating Flood Impact
The Bhote Koshi flood, triggered by a glacial avalanche in the Langtang Lirung region, caused widespread damage along the Trishuli river basin. According to the National Disaster Risk Reduction and Management Authority (NDRRMA), Nepal’s disaster management body, as of October 1, 2026, at least 1,455 bodies have been recovered. As of Ashoj 10 (BS), the flood had resulted in 1,453 deaths, 9,287 injuries, and 5,285 people missing.
The disaster destroyed over 7,570 homes and damaged an additional 20,000. Infrastructure losses include 32 bridges and approximately 25 miles of roads washed away. The Nepal government estimates the preliminary damage from the flood to exceed Rs 400 billion (USD 2.64 billion), with an estimated USD 4-5 billion required for comprehensive reconstruction.
Australia has pledged AUD 11 million in humanitarian assistance to Nepal. In response to the extensive damage, Nepal has requested USD 20 million from the United Nations Loss and Damage Fund for the Bhote Koshi flood, a figure representing only 0.5% to 0.7% of the total estimated economic loss. As of Bhadra (August 2026), no country has yet received funds from this mechanism.
Ongoing Cooperation and Future Engagements
Australia has been a strong development partner for Nepal, providing support in education, human development, governance, gender equality, and social inclusion. The two nations will celebrate 65 years of diplomatic relations in 2025. In 2026, 19 Nepali students commenced Master’s degrees in Australia under the Australia Awards scholarship program.
The third Nepal-Australia Bilateral Consultative Mechanism (BCM) meeting, held in Kathmandu on July 24, 2026, explored expanded cooperation in areas such as climate resilience, green economy, water resource management, agricultural research, trade, air connectivity, tourism, hydropower investment, and education.
Minister Khanal is scheduled to depart on October 3 for Fiji and Tuvalu to participate in the Pre-COP Leaders Event from October 5-6. Following this, he will travel to Australia for a bilateral meeting with his Australian counterpart, Penny Wong, on October 8, before returning to Nepal on October 12.
The board of the United Nations Loss and Damage Fund is slated to hold its next meeting in December 2026. The NDRRMA announced on October 1, 2026, that search and rescue operations in the Bhote Koshi flood-affected areas have concluded, marking the transition to the rehabilitation and recovery phase. Additionally, the Nepal Insurance Authority, the country’s insurance regulator, issued a special procedure on September 28, 2026, to expedite insurance claims for flood victims, allowing claims up to Rs 500,000 to be paid without a surveyor.
Specific details regarding other discussions aimed at further strengthening Nepal-Australia relations, beyond the Australia Awards scholarships, were not immediately available.
