Nepal’s foreign policy sees continuity despite Prime Minister Shah changing tack

Summary

Nepal's new government under Prime Minister Balendra Shah continues traditional foreign policy priorities with a renewed focus on economic diplomacy, despite procedural changes in diplomatic engagements. Relations with India and China remain central, alongside efforts to attract foreign investment and strengthen diplomatic institutions.

Key Points
  • Prime Minister Balendra Shah's government maintains Nepal's core foreign policy priorities, particularly relations with India and China.
  • Shah has changed diplomatic engagement style by reducing one-on-one meetings with ambassadors and visiting dignitaries.
  • Foreign Minister Shisir Khanal emphasizes economic diplomacy prioritizing foreign investment, digital economy, and institutional reforms.
  • Nepal faces institutional challenges in its diplomatic network, including vacancies in ambassadorial positions and budgetary constraints.
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