Foreign Minister Khanal visited India from June 5–7, 2026, where discussions covered development cooperation, trade, energy, and people-to-people relations. Khanal said Nepal is not seeking third-party mediation on the border dispute with India and aims to resolve it through diplomatic processes, signalling a move toward what he described as 'development diplomacy' and away from 'geopolitical friction' in Nepal-India relations.
Khanal then visited China from June 14–17, 2026, focusing on strengthening political mutual trust and deepening practical cooperation, including cross-border transportation, border infrastructure, and air links. Nepal reaffirmed its One-China Policy and its commitment to preventing any forces from using Nepali territory to undermine China's interests. The ruling Rastriya Swatantra Party has formally proposed 'development diplomacy' as the core framework of Nepal's foreign policy, positioning it as a tool for promoting national sovereignty, economic prosperity, and citizen welfare.