May 2023 Analysis: International Relations & Foreign Affairs
On international front, Nepali delegations went on high level visits to Bangladesh, UK, India, and China. Dignitaries from Norway and Australia also visited Nepal for strengthening cooperation on different ends. The official visit of PM Puspha Kamal Dahal to India is scheduled from 31st May to 3rd June. Russia has actively shown interests in development projects in Nepal.
The much-anticipated visit of PM Puspha Kamal Dahal to India took place from 31st May to 3rd June after the cordial invitation of the Prime Minister of India. This trip was the PM first foreign visit after he took the office on December 2022. The array of agendas was laid couple of months prior to the visit. The official visit of PM accompanied by other side meetings cracked a series of deal in favor of both countries. Nepal and India signed MoU on seven different agreements, if successfully implemented could bring a major economic breakthrough in Nepal. The seven documents exchanged between Nepal and India included connectivity trough railways, electricity transmission, and digital payments among others.
The most counted-upon Nepal-India Transit Treaty got renewed. It has been revised after almost 20 years and the amendment will let Nepal access India’s inland waterways for cargo transportation to sea ports. It shall also Nepal to use new railway route. In terms of oil pipeline, an agreement has been reached for construction of two pipelines in Nepal. A cross border pipeline would be built from Siliguri in India to Charali in Jhapa, Nepal. Secondly, for smooth supply of petroleum products, a pipeline would be built from Amalekhgunj of Bara to Lothar of Chitwan. The signing of energy agreements between Nepal and India has heightened the economic aspiration in Nepal. An agreement was sealed for the development of Lower Arun, which will have a 669 MW capacity, and a hydropower deal for the 480 MW Fukot-Karnali project. There were also talks of Butawal-Gorakhpur 400 KV transmission line. And the most ambitious one being export of 10,000MW of from Nepal to India.
Further, an agreement for cross border digital payment between Nepal and India would aid in painless transaction for tourists, businesses and students. In education sector, the MoU was signed between Institute of Foreign Affairs and Sushma Swaraj Institute of Foreign Service. It would greatly promote in exchange of foreign policy at academic level.
Nepal and India have their own differences in terms of border issues, balance of payments among others. But this year was departure from twenty years of relation, bringing bilateral relation to new heights. The robust political trust built between two countries is evident through Indian counterpart himself speaking on border issue and assuring the resolution of the same. Also the delay in the PM visit might have been because of internal negotiations going on between Nepal and India at Ministerial level and private sectors. The Power Summit that took place on April also acted as catalyst for negotiation in Energy sector. For intensifying the power trade, Nepal needs create favorable environment by providing license to the private companies here in Nepal.
The long-awaited power cooperation between Nepal and Bangladesh gets some direction. The fifth meeting of the secretary-level Joint Steering Committee on Energy Cooperation, took place on 10th May to 13th May on Bangladesh.
With the positive nod from India regarding Nepal’s proposal for exporting electricity to Bangladesh, a tripartite agreement is to be set between the Nepal Electricity Authority, the Bangladesh Power Development Board and the NTPC Vidyut Vyapar Nigam Limited (NVVN) of India. Until now two hydropower projects have been proposed for transmission; Likhu-4. And building Sunkoshi-3 hydropower project with joint venture from Nepal and Bangladesh.
The optimism from India can also be seen from its neighborhood first policy. The One Sun One World One Grid (OSOWOG) initiative, which is transnational electricity grid initiative by India. Nepal and India’s also has joint vision to include BBIN countries in power cooperation. Only a small portion of the South Asia’s hydroelectric potential has been tapped. The following cooperation could be extended to other countries in the region for better connectivity in the future.
The news of frequent closure and opening of Nepal-China border has become a common phenomenon. Although, the official level talk at least guarantees opening of Tatopani, Rasuwa and Hilsa border points between Nepal and China, the trade and people’s movement still suffers. Recently, the tatopani has been the most suffered border point. China’s random control of the border in tatopani has hampered traders the most. The border was opened on 1st May and then shut down again on 2nd May. Whilst the border was open, it wasn’t hassle free, the goods from Nepali trucks had to be transported to Chinese container as vehicles from Nepal are not allowed to enter China. The vibrant and historical trade route between Nepal and China has been the victim of unilateral and stringent border control.
The ideological interaction between Chinese Communist Party (CCP) and Nepal Communist Party (NCP) has been going on since 2019. The MoU was signed between CCP and NCP for exchange of party-to-party experiences, study visits at cadre level and local and youth leaders and training for media personnel as well. While the training and exchanges were halted during covid-19, it has now resumed. For the same purpose, Agni Prasad Sapkota, former parliament speaker and vice chairperson of the CPN (Maoist Centre) and his team left for China on 19th May. The 20-member delegation is scheduled to return back Nepal on June 1. Sapkota and Foreign Department Head Liu Jianchao also held one-to-one discussion. The two parties decided to foster friendship, mutual trust, and practical cooperation while also stepping up strategic dialogue and experience-sharing in governance. Amid decreasing Chinese influence in Nepali politics and PM prioritizing his visit to India over China reflects the urgency of China to hold the training for communist parties.
The increasing tempo of Russia Nepal relations is visible through last month official visit of Chairman of the National Assembly Ganesh Prasad Timilsina to Russia, and Russia’s interests in array of development projects in Nepal. Russia has demanded for detailed project proposals of 13 different projects in Nepal that ranges from railway and road construction, also for hospital construction and scholarship quota for Nepalese students. The Russian proposal also includes fertilizers, Russian Helicopters, direct flight between Moscow and Kathmandu, People-to-people engagement, among others.
The Russian engagement in Nepal in terms of infrastructure and development projects had almost stopped after cold war. Russian interests in Nepal has both sides. For a capital deficit country like Nepal, Russian investments could be of great help in economic prosperity of Nepal. The other side is that increasing involvement from different big powers could intensify already existing geopolitical sensitivity in Nepal.
Bhutanese Refugee resettlement program, the objective of which was to resettle refugees for safer and sustainable life took a new turn in Nepal. The Bhutanese Refugee scam has once again exposed the fragility of Nepali bureaucracy and politics. The Bhutanese Refugees resettlement to third country was facilitated by UNHCR from 2007 to 2016. UNHCR then halted the third country resettlement and GoN in 2019 formed a task force for the same. The Bhutanese Refugees scam in Nepal has created trust issues in the international arena. The credibility of Nepal will now be significantly impacted especially in UNHCR, the US, and other Western Countries that had resettled the refugees. The US Department spokesperson expressed concern over the refugee scam calling it “unlawful fabrication of refugee documents.” This incident has proved to be a great challenge for Nepalese security system. When Home Ministries and concerned authorities are involved in such conspiracy, it is a big question for national security.
Australia’s Assistant Foreign Minister Tim Watts was on a two-day visit to Nepal from 16th May to 17th May. Watts paid a courtesy call on PM Puspha Kamal Dahal and Foreign Minister NP Saud. Different issues from commercialization of agriculture sector in Nepal to issues of Nepali students in Australia were discussed. Similarly, International Development Minister of Norway, Anne Beate Tvinnerreim visited Nepal on 11th May. The main focus of visit hovered around MSI Nepal, funded by Norwegian Agency for Development Cooperation that has been providing contraception and safe abortion services to women in remote places in Nepal. Also, Norway, Nepal, and ICIMOD are expanding their collaboration to conserve Asia's Water Tower.
Foreign Minister of Nepal Narayan Prakash Saud attended the Coronation Ceremony of His Majesty King Charles III and Her Majesty Queen Camilla held at Westminster Abbey on 6th May. Foreign Minister of Nepal Narayan Prakash Saud also led the delegation to Bangladesh to participate in the 6th Indian Ocean Conference held in Dhaka from 12th May to 13th May. The connectivity with ocean is of great importance for landlocked countries like Nepal. The Foreign Minister of Nepal also had meeting with Prime Minister of Bangladesh, Sheikh Hasina and dignitaries from other countries. The Minister stressed upon the importance of connectivity for overall energy cooperation in the region and the sub region.
Timeline of major events
| Date | Events |
| May 10th to 13th | Fifth meeting of the Joint Steering Committee on Energy Cooperation between Nepal and Bangladesh |
| May 12th & 13th | Foreign Minister of Nepal Narayan Prakash Saud led the delegation to participate in the 6th Indian Ocean Conference |
| May 16th & 17th | Australia’s Assistant Foreign Minister Tim Watts was on a two-day visit to Nepal |
| May 31st to June 3rd | Official visit of PM Puspha Kamal Dahal and his delegation to India |
Nepal - India
PM Visit to India
The much-anticipated visit of PM Puspha Kamal Dahal to India took place from 31st May to 3rd June after the cordial invitation of the Prime Minister of India. This trip was the PM first foreign visit after he took the office on December 2022. The array of agendas was laid couple of months prior to the visit. The official visit of PM accompanied by other side meetings cracked a series of deal in favor of both countries. Nepal and India signed MoU on seven different agreements, if successfully implemented could bring a major economic breakthrough in Nepal. The seven documents exchanged between Nepal and India included connectivity trough railways, electricity transmission, and digital payments among others.
The exchanged agreements
The most counted-upon Nepal-India Transit Treaty got renewed. It has been revised after almost 20 years and the amendment will let Nepal access India’s inland waterways for cargo transportation to sea ports. It shall also Nepal to use new railway route. In terms of oil pipeline, an agreement has been reached for construction of two pipelines in Nepal. A cross border pipeline would be built from Siliguri in India to Charali in Jhapa, Nepal. Secondly, for smooth supply of petroleum products, a pipeline would be built from Amalekhgunj of Bara to Lothar of Chitwan. The signing of energy agreements between Nepal and India has heightened the economic aspiration in Nepal. An agreement was sealed for the development of Lower Arun, which will have a 669 MW capacity, and a hydropower deal for the 480 MW Fukot-Karnali project. There were also talks of Butawal-Gorakhpur 400 KV transmission line. And the most ambitious one being export of 10,000MW of from Nepal to India.
Further, an agreement for cross border digital payment between Nepal and India would aid in painless transaction for tourists, businesses and students. In education sector, the MoU was signed between Institute of Foreign Affairs and Sushma Swaraj Institute of Foreign Service. It would greatly promote in exchange of foreign policy at academic level.
Departure from two decades of relation
Nepal and India have their own differences in terms of border issues, balance of payments among others. But this year was departure from twenty years of relation, bringing bilateral relation to new heights. The robust political trust built between two countries is evident through Indian counterpart himself speaking on border issue and assuring the resolution of the same. Also the delay in the PM visit might have been because of internal negotiations going on between Nepal and India at Ministerial level and private sectors. The Power Summit that took place on April also acted as catalyst for negotiation in Energy sector. For intensifying the power trade, Nepal needs create favorable environment by providing license to the private companies here in Nepal.
Nepal – Bangladesh Energy Cooperation vis-à-vis India
The long-awaited power cooperation between Nepal and Bangladesh gets some direction. The fifth meeting of the secretary-level Joint Steering Committee on Energy Cooperation, took place on 10th May to 13th May on Bangladesh.
With the positive nod from India regarding Nepal’s proposal for exporting electricity to Bangladesh, a tripartite agreement is to be set between the Nepal Electricity Authority, the Bangladesh Power Development Board and the NTPC Vidyut Vyapar Nigam Limited (NVVN) of India. Until now two hydropower projects have been proposed for transmission; Likhu-4. And building Sunkoshi-3 hydropower project with joint venture from Nepal and Bangladesh.
The optimism from India can also be seen from its neighborhood first policy. The One Sun One World One Grid (OSOWOG) initiative, which is transnational electricity grid initiative by India. Nepal and India’s also has joint vision to include BBIN countries in power cooperation. Only a small portion of the South Asia’s hydroelectric potential has been tapped. The following cooperation could be extended to other countries in the region for better connectivity in the future.
Nepal – China
Random Border Control
The news of frequent closure and opening of Nepal-China border has become a common phenomenon. Although, the official level talk at least guarantees opening of Tatopani, Rasuwa and Hilsa border points between Nepal and China, the trade and people’s movement still suffers. Recently, the tatopani has been the most suffered border point. China’s random control of the border in tatopani has hampered traders the most. The border was opened on 1st May and then shut down again on 2nd May. Whilst the border was open, it wasn’t hassle free, the goods from Nepali trucks had to be transported to Chinese container as vehicles from Nepal are not allowed to enter China. The vibrant and historical trade route between Nepal and China has been the victim of unilateral and stringent border control.
Nepalese Delegation visits China
The ideological interaction between Chinese Communist Party (CCP) and Nepal Communist Party (NCP) has been going on since 2019. The MoU was signed between CCP and NCP for exchange of party-to-party experiences, study visits at cadre level and local and youth leaders and training for media personnel as well. While the training and exchanges were halted during covid-19, it has now resumed. For the same purpose, Agni Prasad Sapkota, former parliament speaker and vice chairperson of the CPN (Maoist Centre) and his team left for China on 19th May. The 20-member delegation is scheduled to return back Nepal on June 1. Sapkota and Foreign Department Head Liu Jianchao also held one-to-one discussion. The two parties decided to foster friendship, mutual trust, and practical cooperation while also stepping up strategic dialogue and experience-sharing in governance. Amid decreasing Chinese influence in Nepali politics and PM prioritizing his visit to India over China reflects the urgency of China to hold the training for communist parties.
Nepal-Russia
The increasing tempo of Russia Nepal relations is visible through last month official visit of Chairman of the National Assembly Ganesh Prasad Timilsina to Russia, and Russia’s interests in array of development projects in Nepal. Russia has demanded for detailed project proposals of 13 different projects in Nepal that ranges from railway and road construction, also for hospital construction and scholarship quota for Nepalese students. The Russian proposal also includes fertilizers, Russian Helicopters, direct flight between Moscow and Kathmandu, People-to-people engagement, among others.
The Russian engagement in Nepal in terms of infrastructure and development projects had almost stopped after cold war. Russian interests in Nepal has both sides. For a capital deficit country like Nepal, Russian investments could be of great help in economic prosperity of Nepal. The other side is that increasing involvement from different big powers could intensify already existing geopolitical sensitivity in Nepal.
Bhutanese Refugees
Bhutanese Refugee resettlement program, the objective of which was to resettle refugees for safer and sustainable life took a new turn in Nepal. The Bhutanese Refugee scam has once again exposed the fragility of Nepali bureaucracy and politics. The Bhutanese Refugees resettlement to third country was facilitated by UNHCR from 2007 to 2016. UNHCR then halted the third country resettlement and GoN in 2019 formed a task force for the same. The Bhutanese Refugees scam in Nepal has created trust issues in the international arena. The credibility of Nepal will now be significantly impacted especially in UNHCR, the US, and other Western Countries that had resettled the refugees. The US Department spokesperson expressed concern over the refugee scam calling it “unlawful fabrication of refugee documents.” This incident has proved to be a great challenge for Nepalese security system. When Home Ministries and concerned authorities are involved in such conspiracy, it is a big question for national security.
High-level visits
Australia’s Assistant Foreign Minister Tim Watts was on a two-day visit to Nepal from 16th May to 17th May. Watts paid a courtesy call on PM Puspha Kamal Dahal and Foreign Minister NP Saud. Different issues from commercialization of agriculture sector in Nepal to issues of Nepali students in Australia were discussed. Similarly, International Development Minister of Norway, Anne Beate Tvinnerreim visited Nepal on 11th May. The main focus of visit hovered around MSI Nepal, funded by Norwegian Agency for Development Cooperation that has been providing contraception and safe abortion services to women in remote places in Nepal. Also, Norway, Nepal, and ICIMOD are expanding their collaboration to conserve Asia's Water Tower.
Foreign Minister of Nepal Narayan Prakash Saud attended the Coronation Ceremony of His Majesty King Charles III and Her Majesty Queen Camilla held at Westminster Abbey on 6th May. Foreign Minister of Nepal Narayan Prakash Saud also led the delegation to Bangladesh to participate in the 6th Indian Ocean Conference held in Dhaka from 12th May to 13th May. The connectivity with ocean is of great importance for landlocked countries like Nepal. The Foreign Minister of Nepal also had meeting with Prime Minister of Bangladesh, Sheikh Hasina and dignitaries from other countries. The Minister stressed upon the importance of connectivity for overall energy cooperation in the region and the sub region.
CESIF Nepal