Nepal prioritises economic diplomacy amid major shifts in geopolitics: Foreign Minister

Kathmandu: Nepal should avoid interpreting international relations primarily through geopolitical rivalry and instead focus on practical partnerships that advance economic growth, Foreign Minister Shisir Khanal said on Monday, setting out what he described as a more development-oriented approach to foreign policy.

Speaking at the fifth Professor Yadu Nath Khanal lecture series in Kathmandu, Khanal said Nepal’s diplomacy must increasingly serve national economic priorities, including trade, investment, tourism, technology cooperation and market access.

He said the global environment is undergoing rapid change with rising competition among major powers, shifting supply chains and the growing influence of technology and artificial intelligence on international power structures.

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“For countries like Nepal, these changes present both challenges and opportunities,” he said, adding that foreign policy must remain anchored in national interest while adapting to evolving realities.

Khanal said geography should not be viewed narrowly as a constraint shaped by geopolitical pressure but as a platform for connectivity and economic opportunity.

The foreign minister said Nepal’s recent engagements with India and China reflected this approach.

During recent visits, he said discussions with India focused on connectivity, infrastructure, digital cooperation, cross-border payment systems, education and emerging technologies, including artificial intelligence and regional language tools.

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With China, he said talks centred on connectivity, energy cooperation, agricultural technology, customs modernisation and infrastructure development.

Nepal’s external relations, he said, were “neither a zero-sum exercise nor a matter of choosing between partners.”

Khanal said this approach reflected Nepal’s commitment to non-alignment, which he described not as passivity but as active engagement based on independent judgement and national interest.

He said Nepal remained committed to the principles of the United Nations Charter, Panchasheel, peaceful coexistence and non-alignment which continue to guide its foreign policy.

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The foreign minister said diplomacy was inseparable from domestic credibility, adding that political stability and economic progress at home shaped Nepal’s standing abroad.

He said the government had placed good governance and rapid economic growth at the centre of its priorities, and foreign policy was being aligned accordingly through what he called “result-oriented development diplomacy.”

“Our people today aspire to greater opportunities, development and prosperity and our foreign policy must increasingly serve these national aspirations. In this context, the government has placed good governance and rapid economic growth at the centre of its priorities. Our citizens, particularly the younger generation, expect results, opportunities and accountable institutions,” Khanal said.

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Nepal’s diplomatic missions, he said were being reoriented towards economic objectives including investment promotion, tourism, trade facilitation and technology partnerships.

Khanal also said the protection of Nepali citizens abroad remained a core responsibility with strengthened crisis response systems, communication channels and consular support mechanisms.

Reflecting on the legacy of Professor Yadu Nath Khanal, he said diplomacy required discipline, knowledge and historical understanding and could not be reduced to slogans or reactive analysis.

He added that effective diplomacy also required the ability to communicate a country’s identity and aspirations clearly to the world, a function increasingly linked to public diplomacy and international perception.