The relation between Nepal and the United Kingdom is time-honoured, quintessential and ineffable for a host of reasons. Initiating in 1816, the relationship celebrated its bicentennial in 2016 and continues to evolve. Over the years, wisdom, sacrifice and effort have been dedicated to nurturing the bond between these two nations. Both have set a unique example for the world—demonstrating how two former arch-adversaries can transform into steadfast companions. Most importantly, despite never being subjugated, Nepal maintained a cordial, respectful and enduring relationship with the UK.

Regardless of the considerable aerial distance of at least 7,450 miles, both have cultivated a monumental friendship that has endured through the good and bad weather of world history. The two major World Wars, along with numerous frontier wars fought in Asia, Europe, Africa, the South Atlantic and beyond, have inscribed the history of wider engagement of Gurkhas from Nepal.

Their contribution has formed the bedrock upon which the bilateral relationship stands strong, stable and astounding. Besides, the Nepal-Britain Treaty of Friendship of 1923 formally recognised Nepal’s sovereignty and independence. Additionally, it is truly spectacular to witness the spontaneous goodwill that exists within British society towards Nepal and its people. For these raison d'être, the relationship nestles on a hill both in terms of government-to-government as well as people-to-people ties.

Upon observing the relationship, an audacious inquiry arises: Whether this relationship has been sufficiently transformed into a vehicle of prosperity. The reason is that the world is living in the 21st century, where a forward-looking approach is prevalent in bilateral relations. This approach embodies elements such as future orientation, constructivism and cooperation based on mutual interest, rather than merely relying on historical contents. The approach advocates for economic and strategic agreements and benefits, thereby unlocking new horizons.

Togetherness reinforces complementarity through inter-dependency. That ultimately leads to common prosperity. Consequently, any two countries should focus on the present while aiming for a brighter future. Although history serves as the springboard, it alone cannot reward the entire economy. Essentially, the two nations should explore new areas to foster their shared prosperity. However, from this viewpoint, the relationship still has a long way to go before making bilateral strides.

In a bilateral tie, various diplomatic buzzwords are frequently employed—advancing the relationship to ‘a next level’ or ‘a new era’. Yet success depends on how effectively the ‘next level’ and ‘new era’ are invented within a country’s context. That is visibly accompanied by an actionable Memorandum of Understanding. The 21st century has observed numerous such exemplary cases being adopted globally. Here comes the question—‘Did we as well?’

Unexplored avenues

Despite the illustrious relationship, a range of transformative flights are yet to hit the ground running. The UK’s share in Nepal’s inward FDI hovers around 1 percent. Bilateral trade is lower than one percent of Nepal’s annual international trade. The annual influx of British tourists is still below 60,000. The previous air connectivity between the two societies via direct flights has not been operational for several years. The inflow of remittance from the UK appears paltry, constituting only about three percent of Nepal’s total pie.

The sombre portrayal raises eyebrows about why the opportunity was inert despite the existing goodwill. Given the rise of the notion of ‘trade, no aid’, the topic of aid itself is not handled here. Nonetheless, one might readily inquire why the trade figures look Lilliputian. Meanwhile, the size of the Nepali diaspora in the UK has skyrocketed, especially in the postmillennial era. The bilateral trade still remains defiant.

London has been a premier hub for banking, finance and insurance worldwide. Alone, the city houses one of the world’s largest centres for cross-border banking, foreign exchange turnover, specialised risk management, insurance transactions, stock exchange, green and sustainable bonds and FinTech investment, among others. The British tech industry is the third-largest global powerhouse—following the US and China—valued at $1.2 trillion. Nepal at this time is striving to attain an annual GDP growth of 7 percent, expanding its economy from over $44 billion in 2025 to approximately $100 billion by 2031. Against this backdrop, recharging the Nepali private sector by leveraging British banking and financial institutions (BFIs) seems instrumental in achieving these goals. The country’s hydropower, tourism, manufacturing and tech industries are already well-positioned to take advantage.

Every year, at least 94 million Britons travel abroad, making the country a society of travellers. In terms of Nepal’s appeal as a travel destination, it is essential to recognise the contributions of several British celebrities, who have popularised Nepal’s breathtaking allure both within and beyond the UK.

The eminent ‘soft power’ that the UK possesses, especially through its media, publications and the English language, enables its impact to float globally, thereby promoting Nepal as a brand. By capitalising on this, Nepal can significantly boost its tourism.

In relation to climate change, the UK’s prominent role on the global stage can serve as a substantial asset for Nepal. It is particularly pertinent at a time when Nepal faces the great risk of becoming a victim of the global phenomenon. Yet, the country is responsible for nothing. One consequence is glacier melt, which poses a serious threat to the critical water sources in South Asia. Collaborating with the British government, academic institutions, think tanks, networks and the media can be a linchpin in addressing the pressing issue.

Down the road

As the current government has rolled out an agenda of economic leapfrogging, economic diplomacy must play a central role in foreign relations. In alignment with this agenda, economic diplomacy should seize the opportunity to the hilt while turning over a new leaf with the UK. For this, an immediate change in posture must be included in the must-do list. This necessitates transforming Nepal’s image from ‘a bowl-bearer’ to ‘a biz torch-bearer’. The logic is that the country needs to be visible on the global FDI radar, showcasing its captivating narratives. Nepal’s energy sector has commenced exporting power to major South Asian economies. Similarly, the climactic success of Nepal’s IT sector can grab the global investors’ attention. Moving forward, a well-orchestrated and resolute approach by various governmental and non-governmental actors is a significant step that opens windows of opportunity.

Sectors such as power, IT, trade and tourism are within the quick grasp of British FDI; thus, they should be kept on the runway. Engaging in meaningful bilateral instruments can prompt their flights.

Nothing is more effective than an economic agenda in contemporary diplomacy. Moving forward, once the relationship expands into mutual prosperity, a highly rewarding and sustainable bridge will connect the two close friends. This long-anticipated bridge will take shape through new wisdom and effective measures. As the adage goes, never miss the opportunity to make your hay while the sun shines. Particularly, in the context of Nepal-UK relations, the sun has been gracious for a long time. No more waiting! Now is the moment to lay the groundwork and develop strategic actions aligned with technical competence and national interests.