Nepal, U.S. Discuss Economic Cooperation During Sergio Gor’s Kathmandu Visit
KATHMANDU, Nepal — U.S. Special Envoy for South and Central Asia Sergio Gor began political meetings in Nepal on Friday, holding talks with Foreign Minister Sishir Khanal and Finance Minister Swarnim Wagle as Washington seeks to deepen economic ties with Kathmandu.
Gor, who also serves as U.S. ambassador to India, arrived in Kathmandu on Thursday evening. He is the highest-ranking U.S. official to visit Nepal since Prime Minister Balendra Shah’s government took office on March 27.
Nepali and U.S. officials said the meetings focused on economic cooperation, investment, trade and broader bilateral relations.
After meeting Wagle, Gor said the discussions covered shared priorities, including improving Nepal’s business climate, expanding technology-driven jobs and opening new areas of economic cooperation that could benefit both countries.
The visit comes as the U.S. shows growing interest in Nepal’s technology sector. Starlink, owned by Elon Musk, has been in talks with Nepali officials about a possible presence in the country, while Netflix has also reportedly shown interest in the Nepali market. Nepal has also been seeking to expand software exports to the U.S., as information and communication technology services have become one of the country’s leading export sectors in recent years.
Nepal’s Finance Ministry said the two sides also discussed economic partnership and U.S. aid. The U.S. has long been one of Nepal’s leading bilateral donors, though India overtook it in aid disbursement during fiscal year 2024-25. Nepal is expected to lose significant assistance following the U.S. decision to dismantle USAID. In May 2022, USAID and Nepal signed a five-year Development Objective Agreement with a planned commitment of $659 million.
Washington has continued assistance through the Millennium Challenge Corporation, which remains politically sensitive in Nepal amid claims from critics that the program could undermine the country’s sovereignty. The U.S. has rejected those allegations, saying the $550 million grant is intended to support construction of a high-capacity transmission line and road improvement projects.
The Nepal section of the Butwal-Gorakhpur Cross-Border Transmission Line between Nepal and India is being built with U.S. support under the MCC.
The MCC was also discussed during Gor’s meeting with Khanal, according to officials. The U.S. Embassy said the two sides held constructive talks on expanding trade and advancing MCC-backed initiatives. Nepal’s Foreign Ministry said the meeting focused on strengthening Nepal-U.S. relations, particularly through investment and trade.
Gor is also expected to meet members of Nepal’s business community during his visit. Nepali officials have not said whether he will meet Shah, who has avoided meetings with foreign diplomats while following stricter protocol than previous prime ministers.
Gor is known as a close ally of Trump, who appointed him ambassador to India and special envoy for South and Central Asia. His visit comes just 10 days after U.S. Secretary of State for South and Central Asian Affairs Samir Paul Kapur traveled to Nepal on April 20.
Nepal has recently seen a series of visits by senior officials from major powers. During Kapur’s visit, Cao Jing, deputy director-general at China’s Ministry of Foreign Affairs’ Department of Asian Affairs, also traveled to Nepal for talks with senior officials. Indian Foreign Secretary Vikram Misri is also expected to visit Nepal in mid-May, according to Nepali officials.
India, China and the U.S. remain the three major powers with significant influence in Nepal. (Source: IANS)
