Foreign Minister Khanal calls for economic diplomacy to boost prosperity

Kathmandu – Foreign Minister Shishir Khanal today called for Nepal’s diplomacy to be linked with national economic interests and prosperity, and advocated for a foreign policy that extends beyond political relations to achieve economic priorities.Khanal made the remarks during a presentation titled ‘Economic Diplomacy for Prosperous Nepal: Harmonizing Foreign Policy with Economic Interests,’ organized by the Asian Institute of Diplomacy and International Affairs (AIDIA). He stressed that foreign policy should serve as a means to achieve concrete economic goals such as expanding trade, attracting investment, boosting tourism, facilitating technology transfer, and creating employment opportunities.Khanal emphasized the need to integrate economic diplomacy as an integral component of Nepal’s overall development strategy. He stated that Nepal’s foreign policy must prioritize the nation’s economic transformation, increase production, and expand access to international markets.In the context of a changing global economy, regional competition, and geopolitical shifts, Khanal highlighted Nepal’s imperative to convert its diplomatic relations into tangible economic opportunities. To achieve this, he called for Nepali missions abroad to be actively mobilized as promoters of trade, investment, and economic cooperation.Khanal underscored that economic diplomacy is not solely the responsibility of one government ministry or body. Instead, it requires a concerted effort from all state agencies, the private sector, entrepreneurs, businesses, and the Nepali diaspora. He stressed the importance of clear national priorities, institutional coordination, and a results-oriented approach in economic diplomacy.A clear vision and a coordinated action plan are essential for conducting international relations in line with Nepal’s economic interests. He urged that economic aspects be prioritized in foreign policy formulation and implementation, linking diplomatic achievements with concrete economic outcomes. This necessitates collaboration among relevant government bodies, regular dialogue with the private sector, and capacity building for Nepali missions abroad.Economic diplomacy should also be instrumental in expanding Nepal’s export capacity and enhancing the access of Nepali products to international markets. Foreign missions, he added, must play an active role in identifying markets, expanding trade relations, and developing economic partnerships.He also highlighted the effective use of diplomatic channels to promote Nepal’s natural, cultural, and historical heritage internationally to increase tourist arrivals. Khanal noted that tourism development can generate foreign exchange, create jobs, and stimulate the local economy, thus linking it with national economic priorities.Economic diplomacy, according to Khanal, contributes not only to mobilizing foreign aid and investment but also to the exchange of knowledge, skills, technology, and innovation. He urged the exploration of opportunities to enhance Nepal’s production capacity and participation in global value chains through international partnerships.