Bridge vs. Buffer State: Nepal’s Economic Diplomacy and Challenges
3rd April 2026, Kathmandu
On the occasion of Corporate Nepal’s 12th Anniversary, experts gathered in Kathmandu to discuss the pivotal theme of “Bridge vs. Buffer State: Economic Diplomacy and Nepali Industry.”
Former Chief Secretary Shankardas Bairagi emphasized that Nepal must navigate its foreign policy by understanding the delicate balance between being a ‘Bridge State’ and a ‘Buffer State.’
He noted that while a favorable relationship between India and China presents immense opportunities for Nepal, any friction between the neighbors brings complex challenges that require a pragmatic diplomatic strategy.
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Bairagi further highlighted that the effectiveness of being a bridge depends on identifying a “common ground” that connects both sides rather than leaning towards one.
He asserted that internal political stability and domestic strength are the foundations for managing external relations effectively. With the current government featuring significant youth representation, Bairagi urged the leadership to clearly define Nepal’s international role for the future.
The panel, which included MP Sushanta Baidik, entrepreneur Rajendra Khetan, expert Dipak Gyawali, economist Govinda Raj Pokharel, and MP Sulabh Kharel, concluded that a balanced and practical approach is essential for the growth of the Nepalese industry and national interest.
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