Nepal-US ties should centre on investment, trade and technology: Minister Khanal

Kathmandu, Aug. 25

Foreign Minister Shisir Khanal has said Nepal–US relations should move beyond the traditional framework of development assistance, focusing more on investment, trade, technology and entrepreneurship.

Addressing an event organised by the Centre for South Asian Studies (Nepal) in Kathmandu on Tuesday to mark the 250th anniversary of the US independence, he said that since Nepal was preparing to graduate from the least developed country (LDC), bilateral relations should be advanced on a new economic foundation.

“Nepal is decisively transitioning from an aid-dependent economy towards private-sector dynamism, foreign direct investment and higher-value trade. Our bilateral relationship should now evolve accordingly," he said.

FM Khanal said Nepal–US economic cooperation should focus on three strategic areas. First, Nepal’s skilled youth and information technology workforce should be connected with the US innovation ecosystem and capital to advance digital transformation. Second, he called for expanded cooperation in clean energy and climate resilience. "Sustainable hydropower, cross-border electricity transmission infrastructure and the protection of Himalayan ecosystems should be among the priority areas," he said.

Third, FM Khanal said the knowledge, skills, capital and entrepreneurial capacity of the Nepali diaspora in the United States should be linked to technology transfer, business ties and enterprise development.

“We need to connect the vibrant Nepali diaspora in the US with Nepal’s economic transformation through technology transfer, business linkages and enterprise development,” he said.

Likewise, noting that next year will mark the 80th anniversary of the establishment of diplomatic relations between Nepal and the USA, FM Khanal said relations between the two countries were based on shared democratic values, mutual respect and strong people-to-people ties.

Referring to the US’ longstanding contribution as an important development partner of Nepal, he cited the malaria control programme launched in 1954, the National Malaria Eradication Programme of 1958, the Peace Corps volunteer programme operating since 1962, and the Fulbright Programme as examples of long-term cooperation.

Recalling the humanitarian assistance and reconstruction support provided by the United States following the devastating earthquake of 2015, he said cooperation had more recently expanded into high-impact infrastructure sectors, including clean-energy transmission infrastructure and road connectivity.

He noted that the US constitutional journey, which began after 13 colonies signed the Declaration of Independence on 4 July 1776, had had a global influence on the concepts of fundamental freedoms, popular consent, separation of powers, judicial independence, and checks and balances.

Stating that the world was currently facing geopolitical divisions, environmental crises, economic challenges and rapid technological change, Minister Khanal said misinformation and the rapid development of artificial intelligence had created new challenges for democratic societies.

He said genuine respect for democracy came from protecting institutional integrity, the rule of law and accountable systems of governance.

Published in The Rising Nepal on 26 August 2026.