Opinion | Nepal-Japan relations: Old ties, new gains
Summary
Nepal and Japan share a longstanding relationship based on democratic values and cultural ties, with growing economic cooperation, particularly in sectors like hydropower, agriculture, and infrastructure. Japan supports Nepal through investments, concessional loans, and initiatives to boost connectivity and human capital development.
Key Points
- Nepal-Japan relations have flourished over seven decades anchored on democratic values and cultural ties.
- Japan is a significant source of foreign direct investment in Nepal with interest in hydropower, agriculture, and infrastructure sectors.
- In 2025, Japan provided a concessional loan to Nepal for the Koteshwor Intersection Improvement Project in Kathmandu.
- Both countries could benefit from a 10-year joint economic framework and strengthened cooperation in trade, investment, and vocational training.
