KATHMANDU, Oct 2: Foreign Minister Shishir Khanal has called for Nepal’s foreign policy to be more closely aligned with the country’s economic interests, saying diplomacy should help drive trade, investment, tourism, technology transfer and job creation.
Speaking at the fourth AIDA Lecture Series organised by the Asian Institute of Diplomacy and International Affairs (AIDIA), Foreign Minister Khanal presented a paper titled “Economic Diplomacy for a Prosperous Nepal: Aligning Foreign Policy with Economic Interest”.
Khanal said economic diplomacy should be an integral part of Nepal’s broader development strategy, with foreign policy focused not only on strengthening political and diplomatic ties but also on supporting economic transformation, boosting production and expanding access to international markets.
Amid changes in the global economy, growing regional competition and evolving geopolitical dynamics, Nepal must be able to convert its diplomatic relationships into economic opportunities, Khanal said.
He called for Nepal’s diplomatic missions abroad to be mobilised as active promoters of trade, investment and economic cooperation. Economic diplomacy, he said, should not be viewed as the responsibility of a single ministry or government agency but as a collective effort involving state institutions, the private sector, entrepreneurs, businesses and the Nepali diaspora.
Govt in mission of economic prosperity: Foreign Minister Khanal
“Economic considerations must be given priority in the formulation and implementation of foreign policy, and diplomatic achievements must be linked to tangible economic outcomes,” Khanal said.
He stressed the need for greater coordination among government agencies, regular engagement with the private sector and stronger institutional capacity at Nepal’s diplomatic missions.
Khanal said economic diplomacy should also focus on expanding Nepal’s export capacity and improving the international market access of Nepali goods and services. Diplomatic missions should play a proactive role in identifying markets, strengthening trade relations and developing economic partnerships, he said.
He also identified tourism promotion as an important component of economic diplomacy, saying Nepal’s natural, cultural and historical heritage should be promoted internationally to increase tourist arrivals. Tourism can boost foreign-exchange earnings, create jobs and stimulate local economies, he said.
According to Khanal, economic diplomacy can contribute not only to mobilising foreign aid and investment but also to the exchange of knowledge, skills, technology and innovation. He stressed the need to use international partnerships to strengthen Nepal’s productive capacity and expand its participation in global value chains.
Khanal also called for greater engagement with the Nepali diaspora, saying their knowledge, skills, capital, business networks and experience could contribute to Nepal’s economic development. He said relations with the diaspora should be linked more closely with economic cooperation and investment promotion.
“Economic diplomacy must be results-oriented, practical and based on national priorities,” Khanal said. “Diplomatic relations can make an effective contribution to national prosperity only when the opportunities generated through Nepal’s international relations are transformed into production, trade, investment and employment.”
His address also covered the relationship between economic diplomacy and foreign policy, the role of diplomatic mechanisms in promoting Nepal’s economic interests and ways to strengthen international cooperation for national development. He also highlighted the importance of climate diplomacy.
