FM Khanal presents Nepal as strategic bridge in Asia’s rising century

Foreign Minister Shisir Khanal has said Nepal should leverage its geographical position between India and China to develop itself as an economic, digital and strategic bridge in Asia.

Speaking at an event titled “Steering Nepal’s Future in Asia’s Rising Century” hosted by Asia Society and the Asia Society Policy Institute in New York on Thursday, Minister Khanal said Nepal should not allow the traditional description of the country as a “small state” to limit its aspirations. The event was followed by a conversation with Asia Society President and CEO Dr Kevin Rudd.

The Minister said Nepal’s location between two of Asia’s major economies could be turned into an opportunity for greater connectivity, trade and investment.

“Our question is no longer how Nepal will survive between two big neighbors. Our question is how will Nepal navigate between and beyond,” Khanal said.

On relations with India, the Foreign Minister outlined an approach focused on economic interdependence, production and market connectivity, describing it as “thick connectivity and thin borders.”

He pointed to Nepal’s hydropower exports to Bangladesh through India as an example of how regional connectivity can create wider economic opportunities. He also called for greater production in border special economic zones and stronger links between Nepal and regional supply chains.

Minister Khanal said Nepal’s engagement with China should similarly expand through practical and long-term cooperation. He identified roads, tunnels, dry ports, air services, digital connectivity and cross-border railways as areas for developing trans-Himalayan connectivity.

The Foreign Minister also linked Nepal’s foreign policy with the growing climate risks facing the Himalayan region.

Referring to the recent Bhotekoshi disaster as a “Himalayan tsunami,” Khanal said climate change should be treated as a strategic priority in Nepal’s foreign policy. He called for stronger early-warning systems, exchange of water-related data, predictable grant-based climate finance and practical cooperation with neighbouring and international partners.

The Asia Society program was held on the margins of the 81st UN General Assembly, providing a platform for Nepal to outline its foreign-policy priorities to an international policy audience.