KATHMANDU, Aug. 4: Nepal is placing renewed emphasis on international partnerships and cross-border commerce as central pillars of its long-term development agenda, Foreign Minister Shisir Khanal said on Tuesday, highlighting the government’s commitment to achieving sustainable economic progress despite geopolitical and structural challenges.
Speaking at an interaction programme organised by the Economic Diplomacy Division of the Ministry of Foreign Affairs, Khanal said the government is working to sharpen its development priorities while navigating the unique constraints associated with Nepal’s strategic geographic location. He stressed that a focused and coordinated approach is essential to translate national ambitions into tangible outcomes.
The foreign minister noted that collaboration with development partners and expansion of external markets remain crucial for strengthening the country’s economy. He said economic diplomacy should be aligned with clearly defined national objectives to maximise the benefits of international engagement.
Khanal also observed that global influence is increasingly determined by economic capability, making the effective implementation of fiscal and development policies more important than ever. He called for stronger coordination among institutions to ensure that government plans deliver measurable results and support inclusive growth.
Nepal continues to receive financial and technical assistance from several bilateral and multilateral partners. India remains one of the country’s largest development partners, providing grants and concessional financing for projects in infrastructure, healthcare, education, agriculture, energy and post-earthquake reconstruction. Other key partners include China, the United States, the World Bank and the Asian Development Bank.
Reflecting on Nepal’s status as a Least Developed Country (LDC), Khanal said the nation has access to preferential trade arrangements and non-tariff benefits offered by multiple countries. However, he acknowledged that these opportunities have not been fully utilised, limiting their potential contribution to economic expansion.
He urged policymakers and stakeholders to assess the reasons behind the underutilisation of available trade incentives and identify practical measures to improve their effectiveness. According to Khanal, reviewing existing strategies and removing implementation gaps will help Nepal make better use of international economic opportunities.
Calling for a shift in approach, the minister said Nepal must move beyond prolonged challenges and adopt forward-looking policies that promote resilience, competitiveness and sustainable development. He expressed confidence that with clear priorities, stronger economic governance and deeper global engagement, the country can build a more prosperous future.