KATHMANDU, Aug 25: Foreign Minister Shisir Khanal has called for Nepal-US relations to move beyond traditional development assistance and focus more on investment, trade, technology and entrepreneurship as Nepal prepares to graduate from least-developed country status.
Speaking at a commemorative event organized by the Centre for Social Innovation and Foreign Policy (CESIF) in Kathmandu on Tuesday to mark the 250th anniversary of US independence, Khanal said Nepal’s economic transformation requires a new foundation for bilateral cooperation.
He said Nepal is shifting from an aid-dependent economy toward greater private-sector participation, foreign direct investment and higher-value trade, and that relations with the United States should evolve accordingly.
Khanal outlined three key areas for deeper cooperation: connecting Nepal’s young IT workforce with US innovation and capital, expanding collaboration in clean energy and climate resilience, and harnessing the expertise and investment potential of the Nepali diaspora in the United States.
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Noting that Nepal and the United States will mark 80 years of diplomatic relations next year, Khanal said the partnership is rooted in shared democratic values, mutual respect and strong people-to-people ties. He also acknowledged longstanding US support for Nepal’s development, including in public health, education, reconstruction and infrastructure.
Reflecting on the 250th anniversary of American independence, Khanal said the occasion offers an opportunity to reaffirm commitments to democracy, constitutional governance and human dignity. He stressed that democratic freedoms must deliver tangible economic opportunities for citizens and called for greater international cooperation to address challenges such as climate change, geopolitical tensions, misinformation and the rapid rise of artificial intelligence.
Also speaking at the event, Scott Urbom, Chargé d’Affaires a.i. at the US Embassy in Kathmandu, highlighted the enduring Nepal-US partnership based on shared democratic values, economic cooperation and investment in young talent. He also underscored US support for Nepal’s development through major initiatives, including the more than $500 million Millennium Challenge Corporation (MCC) compact for electricity transmission and road upgrades.
Former UN ambassador Prof Dr Jayaraj Acharya traced the history of Nepal-US relations since 1947, highlighting the impact of US-supported malaria eradication programs, bipartisan support for Nepal’s democratic transition in 1990, and the continued importance of constitutional governance and educational exchanges.
Reshu Aryal, a member of the National Planning Commission, emphasized shared democratic values and the role of youth in strengthening institutions. She called for greater civic maturity, accountability, educational reforms and stronger democratic institutions, saying Nepal can draw lessons from the US experience in building inclusive governance.
Historian Ajapa Sharma reflected on the American republic as an evolving democratic project shaped by principles of self-governance, rights and justice. She stressed that sustaining democracy requires continuous negotiation, compromise and civic engagement across generations.
Political scientist Devika Thapa discussed the future of democracy and Nepal-US relations through stronger institutions, opportunities and partnerships. Highlighting youth participation, economic and technological empowerment, and people-to-people ties, she urged young people to play an active role in strengthening democratic spaces.
Ambassador Vijay Kant Karna, executive chairperson of CESIF, said the 250th anniversary of American independence offers an opportunity to reflect on the global significance of democracy, constitutional governance and human rights. He emphasized that Nepal-US relations are anchored in shared democratic values and that institutions derive legitimacy through public trust and accountability.
