Abbasi, who is visiting Nepal at the invitation of Prime Minister K P Sharma Oli, was received by Finance Minister Dr Yuvaraj Khatiwada at the Tribhuwan International Airport.
He was accorded the guard of honour at Army Pavilion at Tundikhel Ground in presence of Prime Minister Oli.
Abbasi is the first high level foreign leader to visit Nepal after Premier Oli assumed office last month.
Prime Minister Abbasi met his Nepalese counterpart Oli and exchanged views on matters of mutual interest, according to Nepal Foreign Ministry sources.
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Abbasi is the first Pakistan prime minister to visit Nepal after an interval of three years.
Former premier Nawaz Sharif had visited Nepal to attend the 18th SAARC Summit.
Oli will host a dinner tonight in honour of Abbasi.
His visit will provide an opportunity to further expand and strengthen bilateral relations across all areas of mutual interest including trade, education, tourism, defence and people to people contacts, Pakistan's Foreign Office said in a statement.
The visit is a part of Pakistan's "pro-active and outreach efforts" to engage with regional countries, the Foreign Office said yesterday.