Foreign Minister Khanal Urges Pivot Toward Economic Diplomacy

Foreign Minister Shishir Khanal has urged the government to anchor Nepal’s diplomatic engagements firmly in national economic development, calling for diplomatic networks to actively advance commerce, investment, and technological growth.

Speaking in Kathmandu at the fourth Asian Institute of Diplomacy and International Affairs (AIDIA) lecture series, Khanal presented a paper titled "Economic Diplomacy for a Prosperous Nepal: Aligning Foreign Policy with Economic Interest." As reported by My Republica and Nagarik News, Khanal stated that external policy must extend beyond traditional political ties to function as an engine for trade, tourism, technological transfers, and employment generation.

Khanal argued that navigating current shifts in the global economy, rising regional competition, and evolving geopolitical conditions requires Nepal to turn its international partnerships into measurable economic benefits. According to Nepal Samacharpatra, he said diplomatic missions abroad should be deployed as energetic advocates for domestic enterprise, foreign direct investment, and trade partnerships.

During his address, the minister maintained that economic diplomacy cannot remain the sole domain of the foreign ministry. Instead, he framed it as a joint undertaking involving state agencies, the private sector, domestic businesses, and the Nepali diaspora. Khanal stressed that tapping the expertise, capital, and networks of non-resident Nepalis would be crucial for expanding the domestic production base and securing better positioning in international value chains.

To achieve tangible results, Khanal called for structural reforms across government machinery, including regular consultations with commercial leaders and institutional capacity-building for embassies overseas, Nagarik News and My Republica noted. He added that diplomatic channels should actively work to identify foreign markets for Nepali goods and services, helping to reduce trade imbalances.

Khanal also singled out tourism and climate issues as key pillars of contemporary foreign outreach. Highlighting Nepal’s natural and historical heritage, he pointed out that strategic cultural promotion abroad directly drives foreign-exchange earnings and stimulates local employment. He also underscored the necessity of climate diplomacy to safeguard national interests, Nepal Samacharpatra reported, noting that the speech concluded with an interactive session featuring journalist Kuber Chalise alongside attendees from the audience.

While Shilapatra carried the headline of the minister's address, it did not include operational text from the session, which was widely documented across other national media.