Former Prime Minister Dr Baburam Bhattarai, delivering the keynote address at the fifth Professor Yadu Nath Khanal Lecture Series on June 29, 2026, said Nepal’s foreign policy must evolve from a historic focus on national survival toward achieving economic prosperity in a rapidly changing global order. In his lecture, titled “Foreign Policy of Nepal: Navigating Geopolitical and Geoeconomic Trends,” Bhattarai identified four major global trends affecting Nepal: the transition from a US-led unipolar system toward multipolarity, growing technological competition, the rise of geoeconomics, and transnational challenges such as climate change. He argued that Nepal, situated between the rising powers of India and China, must respond through a flexible foreign policy that protects sovereignty while taking advantage of emerging economic opportunities.

Bhattarai proposed “Pragmatic Idealism” as the guiding framework for Nepal’s foreign policy, combining protection of core national interests—particularly sovereignty, territorial integrity and sustainable economic development—with commitments to peace, non-alignment, Panchasheel, international law and a rules-based international order. He argued that economic weakness could undermine Nepal’s practical independence and therefore placed development diplomacy at the centre of foreign policy. As part of this strategy, he revived his proposal to transform Nepal from a landlocked state into a “Vibrant Bridge” between India and China, using connectivity, infrastructure and smart diplomacy to turn the country’s geopolitical location into an economic advantage rather than a constraint.

Bhattarai also proposed building Nepal’s international identity as a “Nation of Peace,” distinguishing the concept from the earlier “Zone of Peace” proposal by framing it around confidence, positive neutrality, social justice, sustainable development and peaceful relations with all countries. He suggested Nepal could become more active in peace mediation, support vulnerable countries and advocate for the Global South while drawing on its record in UN peacekeeping. Concluding with the metaphor of Nepal as a Laliguras blooming between two large rocks, he said the country’s central foreign-policy challenge is no longer simply survival but using smart diplomacy to thrive. The publication notes that the views expressed in the lecture are Bhattarai’s own and do not necessarily represent the Ministry of Foreign Affairs.