Wednesday, July 8, 2026

Economic diplomacy key tenet of foreign policy: Foreign Ministry

Kathmandu, July 5

The Ministry of Foreign Affairs (MoFA) has said that first 100 days of the new government has been successful with the initiatives like launching a new mobile app for Nepalis in foreign countries, rescue of Neplais in crisis, postponement of the graduation from the Least Developed Country (LDC), and execution of economic diplomacy.

In a statement published on Saturday night, the Ministry also highlighted the visit of Foreign Minister Shisir Khanal to India and China, internship programme and initiatives in controlling hundi as its achievements.

According to it, the government has initiated a formal process to defer Nepal's scheduled graduation from the Least Developed Country (LDC) category. "Although Nepal was previously scheduled to graduate on 24 November 2026, due to recent domestic and international economic and geopolitical developments, the government has sought to postpone the graduation until November 2029," read the statement.

On 13 May 2026, FM Khanal wrote to the Chair of the United Nations Committee for Development Policy (CDP) requesting the deferral. According to him, reasons behind seeking the postponement are economic impact and global instability, loss of trade preferences and employment risks, delayed implementation of the Smooth Transition Strategy, post-pandemic vulnerability, and impact of the development in West Asia.

The ministry launched the MoFA Mitra mobile application, on May 26. The application is designed to provide consular assistance and other essential services to Nepalis living abroad, particularly those facing emergencies. The ministry has also expanded its online document authentication system and extended digital consular and legal advisory services to all seven provinces, 77 districts and 537 local government units.

Likewise, it said that a diplomatic intervention had resolved a long-standing problem affecting around 2,000 Nepalis in Portugal whose temporary residence applications had stalled after forged consular authentication stamps were discovered on original police clearance certificates. Following discussions between Nepali and Portuguese authorities, supported by the Nepali Embassy in Lisbon, applications for temporary residence permits are now being processed.

Efforts to protect vulnerable Nepalis overseas have also continued. The ministry, in coordination with Nepali diplomatic missions, has rescued and repatriated 819 citizens who had fallen victim to online scam networks operating in South-East Asia, read the statement.

Similarly, Nepal also secured the release of detained nationals through sustained diplomatic engagement. The United Arab Emirates granted pardons to 128 Nepali prisoners in April 2026, while Saudi Arabia pardoned 33 Nepali nationals in June.

The MoFA also said that it achieved success in resolving trade obstacles affecting Nepali tea exports to India. Following sustained discussions with Indian authorities, including the Ministries of External Affairs and Commerce, the Food Safety and Standards Authority of India and the Tea Board of India, export procedures have been streamlined. The issue was also raised during the Foreign Minister's official visit to India in June.

In response to the crisis in West Asia, a high-level inter-agency task force was formed under the leadership of the Foreign Minister. The team submitted recommendations outlining short, medium and long-term measures to mitigate the conflict's impact on Nepal. During the regional tensions, the ministry established a 24-hour Emergency Response Team, strengthened coordination with diplomatic missions and facilitated the return of 1,047 Nepali nationals from the affected region.

The ministry also announced that Nepal's upgraded passport management system is expected to go live later this month. According to it, preparations are largely complete, while mobile passport services have been introduced in countries without resident Nepali diplomatic missions.

"Work has also begun to allow citizens to apply for passports from any district, and a partnership with the Department of Postal Services will improve passport delivery nationwide," said the MoFA.

On the diplomatic front, Foreign Minister Khanal's official visits to India from 5 to 7 June and China from 14 to 17 June were described as significant milestones.

Discussions with both neighbours focused on expanding trade, investment, energy cooperation, tourism, connectivity and broader economic partnerships. Nepal also reiterated its commitment to resolving outstanding border issues with India through diplomatic dialogue based on historical agreements and maps, while meetings with Chinese leaders reinforced bilateral cooperation and development partnerships.

The ministry said it is giving greater priority to country-specific strategies aimed at identifying mutually beneficial areas of cooperation and strengthening economic diplomacy. Policy initiatives have focused on promoting exports, foreign investment, tourism, information technology and development cooperation through closer coordination among federal, provincial and local governments, the private sector and Nepali diplomatic missions abroad.

Likewise, Foreign Minister Khanal held a virtual meeting with UK Defence Secretary John Healey and Minister for Veterans Alistair Carns' representative Lewis Sander-Jones to discuss long-standing issues concerning former British Gurkha soldiers.

Nepal also secured a United Nations declaration recognising 15 April as the International Day of Wellbeing, while an agreement was signed with Heidelberg University's South Asia Institute in Germany to repatriate centuries-old Nepali manuscripts.

Meanwhile, the ministry launched its first-ever MoFA Nepal Summer Internship and Fellowship Programme 2026, selecting 20 participants from 1,278 applicants to conduct research on foreign affairs, economic diplomacy and the Nepali diaspora. It also opened, for the first time, a public application process for ambassadorial appointments, attracting around 3,000 applications.

Published in The Rising Nepal daily on 6 July 2026.       

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