The German Embassy in Kathmandu has rejected reports suggesting diplomatic pressure or formal warnings were issued to Nepal over the ongoing passport procurement dispute, amid rising political and administrative tensions around the contract with German firms.

In a Facebook statement, the embassy said Nepal’s Chargé d’Affaires in Berlin was invited to a meeting at the German Federal Foreign Office, not summoned, stressing that the distinction is significant in diplomatic practice.

It said no protest note or any other official document was handed over during the meeting, and no warning was issued regarding possible consequences linked to the court proceedings.

“Germany fully respects the independence of the judiciary. In fact, it is a principle enshrined in our constitution,” the embassy said, adding that it does not comment on ongoing court cases and has not done so in this matter.

The clarification comes amid growing controversy in Nepal over the procurement of biometric passports, with concerns about delays, technical readiness and legal complications surrounding the contract with German companies Veridos GmbH and Muhlbauer ID Service GmbH.

According to government officials, the Prime Minister’s Office and the Ministry of Foreign Affairs remain divided over whether the German firms can begin delivering passports by the contractual deadline of July 19.

A section within the PMO has expressed doubts about the readiness of the system, including the migration of records of around 20 million Nepali citizens from the previous IDEMIA platform and the technical adequacy of sample passport copies submitted by the German firms.

However, the Foreign Ministry and the Department of Passports maintain confidence that the companies can deliver on time.

The dispute has already drawn in the Commission for the Investigation of Abuse of Authority, which filed corruption cases against officials of the Department of Passports and representatives of the German firms. Ten individuals were arrested in the case, though a Special Court has since ordered bail for most of the accused.

Amid the uncertainty, the Foreign Minister has reportedly engaged independent consultants to assess preparedness for the rollout of the new biometric passports.

Officials say both the PMO and the Foreign Ministry have now agreed to wait until July 19, the contractual deadline, before deciding on any further course of action.

The Department of Passports currently has a stock of about 38,000 passports, while daily demand stands at 5,000 to 6,000, leaving the government unable to meet full demand.

Under the contract signed last year, Veridos is responsible for supplying e-passport booklets and personalisation services, with a nine-month implementation period and a five-year operational phase. The deadline was later extended to July 19 after earlier delays.