Nepal’s economic diplomacy in action
Economic diplomacy is not a luxury for Nepal. It is a necessity. As the president of the Federation of Nepalese Chambers of Commerce and Industry, I have travelled, negotiated and argued on behalf of Nepali entrepreneurs enough to know that our country’s prosperity will be shaped as much by the conversations held in foreign capitals as by boardroom decisions in Kathmandu. Economic diplomacy is the practical art of turning those conversations into jobs, investment, markets and technologies. If we approach it with clarity and purpose, it will be the single most powerful lever to accelerate Nepal’s transformation from a remittance-dependent economy to one driven by broad-based investment, exports and modern services.
Nepal’s economic reality makes the case urgent. Remittances remain a vital lifeline for millions of families and a stabilising source of foreign exchange, accounting for a very large share of national income in recent years. That inflow has sustained consumption and helped households through difficult times but it is not a substitute for structural change. At the same time, foreign direct investment and private sector investment have lagged behind what our potential and our geography allow. Our economic diplomacy must therefore aim at three connected goals: protect and expand the gains we already have, convert remittance flows and diaspora relationships into productive investments, and bring steady, higher-quality foreign direct investment into sectors that create skills, value addition and sustainable jobs.
The mission of economic diplomacy starts with enabling Nepali businesses to reach the world. For too long, Nepal’s trade has been concentrated in a narrow range of goods and services, and our private sector has been constrained by logistics costs, market access barriers and uneven regulatory frameworks. A focused economic diplomacy strategy must tackle these handicaps directly: open and deepen market access through bilateral and regional engagement, streamline trade facilitation at our borders, and ensure that our negotiators carry clear private-sector priorities into every agreement. Diplomacy that fails to reflect the on-the-ground needs of exporters and investors is diplomacy that will not deliver. When I have met foreign partners and international investors, I have insisted that they also meet our manufacturers, tourism operators and IT entrepreneurs so they can see first-hand the talent and potential that exists here. These person-to-person bridges often convert polite interest into concrete projects.
Equally important is the work of the state to create predictable rules and infrastructure. Investors decide on projects based on certainty: clarity of rules, the time it takes to get permits, the predictability of taxes, and the reliability of power and transport. Economic diplomacy should therefore be used to attract not only capital but partnerships that help build and finance the infrastructure that underpins competitiveness. Public-private collaboration needs to be at the centre of this effort. The private sector can point to priority projects, evaluate bankability and share risk management ideas; the diplomatic corps can help mobilise international financial institutions and bilateral partners to structure support. I have repeatedly called for stronger cooperation between our government, the private sector and development partners to channel investment into energy, connectivity and logistics; areas where a small improvement can yield outsized gains for exports and industrialisation.
Our diaspora is one of Nepal’s most powerful economic assets and economic diplomacy must harness this resource in a systematic way. Nepalis living and working abroad are not only senders of remittances; they are carriers of skills, business networks and market knowledge. Through targeted outreach, incentives for diaspora investment and channels that reduce friction when returning savings into productive ventures, the government can convert individual remittances into collective national development. Embassy-level programmes that pair Nepali entrepreneurs with diaspora mentors, that help match buyers and suppliers, and that provide clear pathways for investment would multiply the value of every dollar sent home. In my conversations with Nepali workers and their employers abroad, it is clear that many wish to invest at home but face uncertainties about project selection, governance and returns. Addressing those uncertainties is a task for our diplomats working hand-in-hand with the private sector.
Trade diplomacy must also be about diversification. Nepal’s location between two of the world’s largest economies is both a challenge and an opportunity. We must not only maintain good relations with our neighbours but also use regional platforms to expand transit links, digital connectivity and service exports. Forums such as BIMSTEC and other regional groupings are valuable arenas to secure agreements that reduce friction for goods and people, to harmonise standards, and to open services markets such as tourism, health and IT. I have advocated for stronger regional business forums and connectivity projects because integration will reduce costs, deepen supply chains and attract investment that depends on regional markets. Trade and investment are not zero-sum; when we remove barriers and build trust, the size of the pie grows for everyone.
Good economic diplomacy also protects our interests when global headwinds blow. The last few years have shown how geopolitics, commodity shocks and pandemic disruptions can upend even well-planned domestic policies. A proactive diplomatic posture can secure supply chains, negotiate preferential access for critical imports, and attract concessional finance in times of stress. It can also help Nepal navigate the complex global landscape of standards, compliance and sustainability. As the world tightens rules around environmental and labour standards, our diplomats must work to ensure Nepali producers can meet those standards rather than be excluded from lucrative markets. This requires investment in skills, certification and quality control at home, but it also requires diplomats who can argue Nepal’s case with credibility and pragmatism.
A modern economic diplomacy agenda must place the private sector at its heart. Our embassies and trade missions need to become centres of market intelligence and matchmaking. Business councils, honorary consuls and industry associations should be formal partners in economic diplomacy so that our foreign policy reflects business reality. I welcome the establishment of dedicated economic diplomacy units in our foreign ministry and believe these must be staffed with professionals who understand both policy and commerce. When the foreign ministry, commercial diplomats and private sector share instruments and goals, the result is a seamless effort that turns negotiations into orders, memoranda into factories, and agreements into jobs.
Attracting high-quality foreign direct investment requires us to tell a better story about Nepal. There are four parts to this story that I stress when I sit across from potential investors. First, Nepal offers strategic geography and preferential access to regional markets. Second, we have a young and aspirational workforce eager to learn new skills. Third, there is a large and growing domestic market, especially in services and tourism. Fourth, with clear reforms and public-private cooperation, projects can be financially viable and socially transformative. But a story alone is not enough. We must back narrative with action: clear sectoral roadmaps, fast-track approvals for anchor projects, transparent incentives and reliable aftercare for investors. When investors feel supported after the deal is signed, they expand; when they feel stranded, they leave. Our diplomatic outreach must therefore be matched by capable, accountable institutions at home.
Tourism and services are areas where Nepal can rapidly scale exports through economic diplomacy. The recovery of travel has returned visitors to our valleys and mountains, and diplomats can multiply this recovery by simplifying visa rules for high-value tourists, promoting Nepal as a destination for wellness and adventure, and creating partnerships with international travel platforms. Similarly, our IT and professional services sector can benefit from diplomacy that opens contracts, supports cross-border data flows under secure frameworks, and connects Nepali firms with global value chains. These are sectors where Nepali talent can compete today if we reduce friction and create enabling partnerships.
Finally, economic diplomacy must be measured by results. We should track not only high-profile visits and signed memoranda but also whether those engagements convert into export orders, factory floor jobs and long-term investments. Success metrics could include increases in export diversification, growth in FDI inflows, higher rates of value-added exports, and more diaspora investments channelled into productive assets. Regular public reporting on these indicators will build trust inside Nepal and with international partners, and will help us refine our tactics.
Economic diplomacy is not a slogan. It is a practice that demands coordination, discipline and relentless focus on outcomes. It asks our diplomats to become economic problem solvers, our businesses to become outward-looking competitors, and our government to create rules that reward investment and innovation. If we commit to that work, Nepal can convert its geographic and human assets into sustained prosperity. As someone who represents the private sector, I am ready to partner with our diplomats and our government to make that happen. Our future will not be gifted. It will be negotiated, built and earned, through smart economic diplomacy that puts Nepali people and Nepali enterprise first.
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Carrying Nepal’s voice abroad
Over the past two years, I, as President of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI), have been at the forefront of Nepal’s economic diplomacy, taking Nepal’s message to some of the world’s most influential business forums. My travels and speeches reveal not only Nepal’s aspirations but also the quiet confidence that the country is ready for investment and partnership.
The journey began in New Delhi on May 31, 2023, at the Nepal-India Summit, where I stood before Indian business leaders alongside then-Prime Minister Pushpa Kamal Dahal and India’s Commerce Minister Piyush Goyal. I reminded investors that Nepal was reforming laws, easing procedures and already rewarding Indian companies with strong returns. My message was simple: Nepal is open for business, and India, as a trusted partner, should be the first to seize the opportunity.
From there, our attention turned north. On September 24, 2023, the first Nepal-China Business Summit was held in Beijing in the presence of then Prime Minister Dahal. I called on Chinese investors to explore Nepal’s hydropower, tourism and service sectors, while announcing FNCCI’s new foreign investment assistance desk. Just over a year later, on December 4, 2024, Beijing hosted the second summit, this time attended by Prime Minister K.P. Sharma Oli. I urged for direct flights from China to Nepal’s new airports in Bhairahawa and Pokhara and highlighted Nepal’s improved credit rating, the best in South Asia after India, as proof of growing investor confidence.
On November 30, 2023, the spotlight shifted to the Gulf, where the Nepal-Dubai Business Forum was organised in partnership with Dubai Chambers during the high-profile COP28 gathering. Despite the crowded global agenda, the event drew around 170 entrepreneurs. I used the platform to stress Nepal’s vast potential in energy, tourism and IT, while also presenting the country’s art, culture and human talent as natural bridges for building stronger business ties. The forum marked a breakthrough in Nepal-UAE economic relations.
Equally significant was the establishment of the Nepal-Qatar Joint Business Council on April 24, 2024, through an MoU signed between FNCCI and the Qatar Chamber in the presence of the Amir of Qatar and Nepal’s Prime Minister. The council was created to promote trade, investment, tourism and technology transfer between the two countries. This institutional mechanism laid the groundwork for deeper collaboration, which was carried forward during the first presidential-level meeting of the council in Doha on October 3, 2024. There, I highlighted Nepal’s reforms and called on Qatari investors to explore opportunities in hydropower, tourism, IT and skill development.
Beyond these highlights, my diplomacy trail stretched further. In Spain in July 2025, I spoke at Seville and Madrid, urging Spanish investors to back Nepal’s clean energy and tourism. In London on July 4, 2025, I called on British businesses to deepen economic ties built on two centuries of friendship.
In every city, my refrain was consistent: Nepal is reforming, investing in infrastructure, and ready for partnerships. I urged the diaspora to act as economic ambassadors and assured foreign investors that Nepal’s new frameworks offer stability and opportunity. As I have often said, FNCCI’s mission is to create ‘a reliable environment for investors’ and ensure that Nepal’s future is not left to chance but negotiated and earned. From New Delhi to Beijing, Dubai to Doha, Madrid to London, my voice has become a steady reminder that Nepal is ready to step confidently into the global economy.
