Former prime minister Baburam Bhattarai on Monday said that Nepal can play the role of a "neutral bridge" between India and China to overcome what he described as the "long-standing structural blockage" to the Himalayan nation's economic development.
Delivering the keynote address at a foreign policy dialogue organised by the Ministry of Foreign Affairs in Kathmandu, Bhattarai said one of the key reasons Nepal continues to remain among the world's least developed countries is that geopolitical constraints have made it dependent "on a single country for trade".
"If we can take advantage of the growing economic weight of both India and China and convert our geopolitical position from a constraint into an opportunity, we can resolve this long-standing structural blockage to Nepal's economic development," said Bhattarai.
"Nepal needs to be clear about the strategic advantages it can offer as a neutral bridge and how it intends to overcome its structural constraints," he said.
Bhattarai said Nepal needs a concrete plan to develop the infrastructure and logistical capacity required to fulfil such a role.
"A pragmatic foreign policy would require Nepal to remain sensitive to the security concerns of our immediate neighbours while preserving full neutrality between them," he said.
"If we strengthen our negotiating capacity, we can secure significant economic benefits in return for addressing the security concerns our neighbours have with us.
"As long as we remain economically dependent, we cannot be fully independent in practice," said Bhattarai, adding, "Nepal needs a pragmatic approach to economic development in order to safeguard its political independence."
India and China are currently in the process of normalising relations post the eastern Ladakh conflict in 2020, which had frozen their ties.
Currently, both countries have resumed the Kailash-Manasarovar Yatra, resumed visas, flights and a high-level dialogue mechanism.
Responding to a question, Bhattarai said, "The future of SAARC (South Asian Association for Regional Cooperation) depends upon the future relationship between India and Pakistan."
"Nepal is a well-wisher of the South Asian fraternity and I hope it (SAARC) will revive someday," he added.
Speaking at the event, Foreign Minister Shisir Khanal said in an interconnected world, geography should not be viewed only as a constraint but also as an opportunity to connect ideas, markets, people and opportunities.
"During my recent visits to India and China, our discussions focused on practical cooperation and a mutually beneficial partnership. With India, we emphasised connectivity, infrastructure, digital cooperation, cross-border payments and emerging technologies," he said.
"With China, discussions focused on connectivity, energy cooperation, agriculture technology and infrastructure development, among others," he added.