Foreign Minister Shishir Khanal has reaffirmed that economic diplomacy is at the heart of Nepal’s foreign policy, emphasizing its role in improving citizens’ livelihoods by expanding trade, investment, tourism, technology, innovation, and sustainable development opportunities. Speaking at an international conference titled “China and South Asia in a Multipolar World: Evolving China–India–Nepal Trilateral Relations” in Lalitpur on Friday, Khanal said Nepal is committed to strengthening partnerships with friendly nations to achieve inclusive and resilient economic growth.
Economic Diplomacy as a National Priority
According to the Foreign Minister’s Secretariat, Khanal said the government’s economic diplomacy aims to create employment, promote entrepreneurship, attract quality investment, expand trade, and strengthen Nepal’s tourism sector while fostering technological advancement and sustainable development. He noted that Nepal’s foreign policy is increasingly focused on delivering tangible economic benefits to its people through stronger international cooperation. “Economic diplomacy has become the central priority of our foreign policy. Nepal is ready to work with all friendly countries for sustainable, inclusive, and resilient development,” he said.
Nepal as a Bridge Between China and South Asia
Highlighting Nepal’s strategic location, Khanal said the country is well positioned to serve as a dynamic bridge connecting China and South Asia through enhanced economic, trade, and people-to-people cooperation. He reaffirmed Nepal’s commitment to maintaining sovereign equality, mutual respect, and mutual benefit with both neighboring countries while remaining sensitive to their legitimate concerns. The minister said the rapid economic transformation taking place across Asia presents unprecedented opportunities for shared prosperity, stressing that collaboration remains the most effective path toward long-term development.
Expanding Trade, Connectivity, and Tourism
Khanal stated that the economic progress of China and India offers Nepal and the wider region significant opportunities to expand trade, attract investment, improve infrastructure, strengthen connectivity, and promote tourism. Although South Asia possesses enormous economic potential, he noted that regional economic integration remains below expectations.
He stressed that improving connectivity, facilitating trade, encouraging investment flows, and strengthening supply chains would accelerate regional prosperity. “The success of our cooperation should not be measured by the number of agreements we sign, but by the opportunities we create for our people,” he said.
Government Focus on Investment and Tourism
The Foreign Minister said the government has placed economic transformation at the forefront of its national agenda, with particular emphasis on quality investment, infrastructure development, export promotion, tourism, clean energy, digital transformation, innovation, and private sector growth. He also reiterated the government’s vision of transforming Nepal from a landlocked country into a vibrant bridge linking China with South Asia.
Nepal’s Cultural Heritage Strengthens Soft Power
Khanal highlighted its unique cultural and natural heritage as an important source of the country’s soft power. He cited the birthplace of Lord Buddha, the spiritual legacy of Guru Padmasambhava, Mount Everest, and its numerous UNESCO World Heritage Sites as key assets that enhance the country’s global identity and tourism appeal.
Call for Stronger Regional Cooperation
The Foreign Minister also called for deeper regional collaboration in areas including energy security, climate change, digital transformation, research, innovation, and people-to-people exchanges. He stressed the importance of strengthening partnerships among universities, research institutions, and academic organizations. Concluding his remarks, Khanal said Nepal remains committed to promoting constructive partnerships based on trust, mutual respect, and shared interests in an increasingly multipolar world. The conference was jointly organized by the Nepal Institute for International Cooperation and Engagement (NIICE) and the Center for South Asia Studies at Fudan University.
