Kathmandu – Nepal Foreign Minister Shisir Khanal has called for a sharper, more opportunity-oriented foreign policy for Nepal cautioning against over-framing global developments through a narrow geopolitical prism and urging diplomacy that directly serves economic transformation and national priorities.
Speaking at the fifth edition of the Professor Yadu Nath Khanal Lecture Series in Kathmandu, Khanal said the global order is undergoing “profound transformations” driven by intensifying major power competition, the growing use of economic instruments in international relations and rapid technological shifts including artificial intelligence and digitalisation. These changes, he said are reshaping both risks and opportunities for countries like Nepal.
He noted that while the multilateral system is under strain, new spaces are simultaneously opening up in connectivity, trade, technology cooperation and investment flows.
For Nepal, he said the challenge lies in navigating this transition with clarity and confidence without allowing excessive caution to constrain engagement.
Khanal said Nepal must remain firmly anchored in long-standing principles of foreign policy, including the UN Charter, Panchasheel, non-alignment and peaceful coexistence.
He stressed that non-alignment must not be reduced to passivity or strategic silence. Instead, he said it should be understood as active, interest-based engagement grounded in independent judgement, a perspective he linked to the diplomatic philosophy of late statesman Yadu Nath Khanal whose legacy the lecture series commemorates.
“The international environment is changing but our guiding principles must be interpreted with relevance to today’s realities,” he indicated adding that Nepal’s foreign policy must evolve without losing its core foundations.
A significant portion of his remarks focused on linking foreign policy with domestic capacity, governance and economic performance. Khanal said diplomatic credibility abroad is inseparable from political stability and visible progress at home, arguing that a country’s external influence is strengthened when it demonstrates confidence internally.
He said the government has placed good governance and rapid economic growth at the centre of its policy agenda and that foreign policy must increasingly be aligned with national development goals.
In this context, he highlighted a shift towards “result-oriented economic diplomacy” where Nepal’s missions abroad are expected to play a more proactive role in trade promotion, attracting investment, expanding tourism, advancing technology partnerships and securing broader market access.
Khanal said Nepal’s diplomatic engagements are being recalibrate accordingly, citing recent high-level discussions with India and China.
With India, he said conversations have focused on expanding connectivity and infrastructure cooperation, strengthening digital partnerships, improving cross-border payment systems and exploring collaboration in emerging technologies including artificial intelligence and language-based digital tools.
With China, he said discussions have centred on energy cooperation, agricultural technology, customs modernisation and infrastructure development under mutually agreed frameworks. He emphasised that Nepal’s approach remains grounded in balance and mutual benefit rather than competition between partners.
“Nepal’s external relations are not a zero-sum exercise,” he said underscoring that diplomacy must be guided by national need, mutual respect and shared advantage while maintaining constructive ties with all sides.
The Foreign Minister also drew attention to the welfare of Nepali citizens abroad, describing migrant workers as a key pillar of the national economy and an essential constituency of foreign policy. He said millions of Nepalis living overseas contribute both to host economies and to Nepal through remittances and social support systems at home.
Acknowledging recent global conflicts and instability in different regions, Khanal said the government has strengthened crisis response mechanisms, consular support and communication systems through its diplomatic missions to ensure timely assistance to Nepali citizens in distress.
He also used the platform to reflect on the intellectual legacy of Yadu Nath Khanal describing him as a strong advocate of disciplined, knowledge-based diplomacy. Foreign Minister said foreign policy, in Khanal’s view was not a space for slogans or emotional interpretation but a serious domain requiring institutional competence, historical understanding and continuous learning.
He added that the veteran diplomat had anticipated the importance of public diplomacy, recognising that a country’s image, credibility and narrative are central to its influence in international affairs. Trust and perception, he said directly affect investment, tourism and broader diplomatic outcomes.
Concluding his remarks, Khanal said the lecture series should continue to function as a serious platform for reflection on Nepal’s foreign policy challenges and opportunities particularly at a time of global uncertainty and structural change.
He said the ideas discussed in the forum should inform not just academic debate but also the practical evolution of Nepal’s diplomatic practice in the years ahead.
