Report on Nepal's Foreign Affairs (2018-2019) Government of Nepal Ministry of Foreign Affairs GOVERNMENT OF NEPAL MINISTRY OF FOREIGN AFFAIRS ANNUAL REPORT (17 July 2018-16 July 2019) Kathmandu, Nepal August 2019 Editorial Team Yagya Bahadur Hamal, Joint Secretary Ram Prasad Subedi, Joint Secretary Ananda Prasad Sharma, Under Secretary Bishnu Prasad Gautam, Under Secretary Ambika Joshi, Under Secretary Published by © Ministry of Foreign Affairs Government of Nepal Singh Durbar, Kathmandu August 2019 Design Bikram Shrestha, Information Technology Officer Printed at S&S Offset Press Anamnagar, Kathmandu This Annual report is also available at the Ministry’s website: www.mofa.gov.np Nepal: Factsheet Geographical location: Latitude: 26° 22' North to 30° 27' North Longitude: 80° 04' East to 88° 12' East Area: 147,181 sq. km Border: East, West and South-India; North-People's Republic of China Capital: Kathmandu Population: 29,609,623 (Projected, CBS Nepal 2019) Name of Country: Nepal Governance Structure: Three-tier-Federal, Provincial and Local levels (Seven Provinces, 753 Local Levels) Head of State: President Head of Government: Prime Minister Parliament: Bicameral (House of Representatives, National Assembly) National Day: 20 September Official Language: Nepali Literacy (5 years above): 65.9 % (Census, 2011) Life Expectancy at Birth: 66.6 years (Census, 2011) GDP Per Capita: US $ 1034 (Economic Survey 2018/19) Monetary Unit: 1 Nepali Rupee (= 100 paisa) GDP: 3464 Billion NPR (US$ 31 billion) Pradeep Kumar Gyawali Minister for Foreign Affairs Message Nepal’s diplomacy became more proactive, dynamic and result-oriented in the year 2018-2019. Within the broad parameters of Nepal's foreign policy, as defined by the Constitution of Nepal, the country’s external relations were directed towards elevating Nepal’s stature in the world and creating a supportive external environment for rapid socio-economic transformation based on the principles of sovereign equality, mutual respect and benefit. Nepal continued to pursue an independent and balanced foreign policy to promote national interest on the basis of the charter of the UN, non-alignment, Panchasheel, international law, and norms of world peace. Nepal has taken a number of initiatives on the foreign policy front since the formation of the present government in February 2018. A balanced approach in external dealings, substantial growth in bilateral engagements and expansion of diplomatic relations have not only earned Nepal tremendous goodwill, support and cooperation from the neighbours and international community but also yielded positive outcomes in several important areas of common interests. I believe, these initiatives will make substantive contribution to our national resolve for graduating from an LDC status at an early date, becoming a middle-income country by 2030, and ultimately realizing the national aspiration of Prosperous Nepal, Happy Nepali. The age-old and multi-dimensional friendly relations between Nepal and India have further deepened and widened. Bilateral engagements at various levels, including at the level of top leadership, helped foster mutual trust and understanding, and partnership for shared benefit. The Prime Ministers of Nepal and India held three meetings since the present Government came to power. Similarly, Nepal’s relations with China have grown through advancement of co- operation in multiple areas based on goodwill, trust, understanding, appreciation of each other's aspirations and sensitivities. The year also witnessed steady momentum in the exchange of high-level visits, bilateral meetings and consultations. The President of Nepal paid a historic state visit to China, the first of its kind after the county became republic. We achieved substantial progress in further expanding and strengthening bilateral cooperation with countries in the extended neighbourhood, major powers of the world, development partners, destination countries for overseas employment, and other friendly countries. Exchange of high-level visits and increased interactions with international community enhanced Nepal’s image and promoted her interest. The Ministry was deeply engaged in arranging high-level visits, both outgoing and incoming, which proved to be beneficial and productive. Nepal continued playing an active role in regional forums. As the Chair of both SAARC and BIMSTEC, Nepal engaged constructively for making these regional forums effective in achieving their objectives. Nepal successfully hosted the 4th BIMSTEC Summit in Kathmandu on 30-31 August 2018 and handed over the chairmanship to Sri Lanka. We also mobilized diplomatic capital towards reviving the stalled SAARC Summit, including through the informal meeting of SAARC Foreign/External Affairs Ministers. Nepal stood firm for regional and international peace and security, protection and promotion of human rights, and achievement of sustainable development. We continued advocating for upholding multilateralism and rules-based international order for a peaceful, stable and prosperous world order where all nations, big or small, enjoy equal rights and fulfil their respective obligations in good faith. Nepal’s flagship contribution to UN peacekeeping operations continued with our standing as the fifth largest troops contributing country. We played constructive, impartial, and objective role in the UN Human Rights Council. We shared our experiences of home-grown and nationally-led peace process with other countries of world undergoing similar type of conflicts. The Ministry established a Brain Gain Centre to encourage Nepali diaspora to contribute to the development of the country through their knowledge, skills, resources and technology. We decided to establish a permanent biennial dialogue forum, Sagarmatha Sambaad, a flagship programme of its own kind, with a view to bringing together global leaders, policy makers, business entrepreneurs, civil society, academia, women and youth from around the world for a free, frank and interactive dialogue on burning global issues, such as climate change, migration, social development, among others. The Ministry and Missions abroad are working to make the Visit Nepal Year, 2020 a success. We organized a National Dialogue on Foreign Policy to develop common understanding on Nepal’s foreign policy. The broader participation and substantive deliberations have contributed to forge consensus among the major political parties and stakeholders, thereby enriching the substance of our foreign policy in the changed context. Our continued contribution to global norms setting has earned us trust and confidence of the international community. Nepal’s articulation of its views on diverse issues confronting the world at large at forums like the UN General Assembly or the World Economic Forum has been well-recognized. In short, Nepal’s foreign relations remained effective and instrumental in promoting overall national interest and enhancing the country’s international image. Shanker Das Bairagi Foreign Secretary Foreword I am pleased to present the Annual Report of the Ministry for the year 2018-19. The year witnessed remarkable growth in Nepal's foreign relations. Building on the political stability, Nepal took concrete steps to diversify and strengthen relations with countries across the world. Nepal's bilateral engagements and its role in regional and multilateral forums significantly increased. We continued to accord topmost priority to our relations with immediate neighbours -India and China- and have achieved notable progress. With India, Cross-border Motihari-Amlekhgunj Petroleum Pipeline Project was inaugurated while with China, Protocol to Transit Transport Agreement was signed. Various bilateral mechanisms with both the neighbours remained active in promoting bilateral cooperation. We had fruitful engagements with our extended neighborhood, development partners and labour destination countries. The relations with them were further advanced through exchange of high-level visits and regular meetings of various mechanisms. We successfully hosted the Fourth BIMSTEC Summit in Kathmandu on 30-31 August 2018. Similarly, our efforts continued towards realizing the SAARC objectives including holding the stalled SAARC Summit. Nepal chaired an informal session of the SAARC Council of Ministers on the sideline of the 73rd UNGA. We actively participated in the 16th Ministerial Meeting of Asia Cooperation Dialogue held in Doha. We maintained firm commitment to multilateralism in line with the principles and purposes of the UN Charter. Nepal participated in major UN and other multilateral forums at the level of President in COP24 in Katowice, Vice President in Climate Action Summit in Vienna, Prime Minister in the 73rd UNGA in New York, and Foreign Minister in the 40th Session of the Human Rights Council in Geneva. We remained proactive in promoting interests of the LDCs and LLDCs. The Ministry internalized the national aspiration of Prosperous Nepal, Happy Nepali in annual action plan to realize it through effective diplomacy. We prepared Country-Specific Strategies for economic diplomacy. Nepali missions abroad remained active in promoting Nepal’s export trade, attracting foreign investment and publicizing Nepal as a preferred tourist destination, particularly in the context of Visit Nepal Year, 2020. The Ministry took initiatives for making a clear, consistent and credible foreign policy. National Dialogue on Foreign Policy was held; the Directives for the Appointment of Nepali Ambassadors