Nepal Considers Shutting Down 10 Foreign Missions to Cut Costs

The Nepal government is internally discussing plans to close or restructure approximately 10 of its foreign missions as part of a wider bureaucratic reform and cost-cutting agenda.

Thu May 21 2026

Nepal's Diplomatic Restructuring Amidst Budget Reforms

Nepal is gearing up to unveil its annual budget in the coming weeks, with the government preparing to implement significant spending cuts as part of its broader governance reform agenda. Among the key priorities for the upcoming budget are good governance, economic reform, connectivity, and human capital development. Sources indicate that the Foreign Ministry is internally discussing plans to scale down several embassies and consulates. This move follows an earlier decision to reduce the number of ministers from 21 to 18, reflecting a broader effort to trim state expenditure.

Divisions Within Foreign Ministry and Future Outlook

The proposal, which could be reflected in the national budget later this month, suggests closing Nepal's embassies in countries such as Brazil, Finland, Austria, Spain, Myanmar, Egypt, and even Canada. Concurrently, the government is considering opening new missions in Romania and Croatia to cater to a growing Nepali diaspora in Eastern Europe. However, this proposal has reportedly triggered divisions within the Foreign Ministry itself. Foreign Minister Shishir Khanal is said to be under pressure to present visible spending cuts ahead of the budget announcement.

Supporters of the plan argue that Nepal's diplomatic footprint must align with economic realities and fiscal discipline. Critics, however, contend that aggressive downsizing could weaken Nepal's global presence at a time when labor migration, international engagement, and diaspora diplomacy are becoming increasingly important for the nation.

*Source: YouTube: WION (2026-05-21)*

Tags: #Nepal #Diplomacy #Budget #CostCutting #Reform