In a dynamic diplomatic engagement, U.S. Assistant Secretary of State Donald Lu concluded his recent visit to Nepal with a message emphasizing transparency, inclusivity, and Nepal’s sovereignty. His trip, part of a three-nation South Asia tour, highlighted critical geopolitical, developmental, and environmental issues, signaling the U.S.’s continued commitment to its relationship with Nepal.
Transparency in Agreements: A Diplomatic Refrain
Lu’s remarks on Nepal’s signing of the Belt and Road Initiative (BRI) Framework Agreement with China underscored the United States’ emphasis on transparency in international agreements. Comparing the BRI framework with the Millennium Challenge Corporation (MCC) Compact, Lu subtly pointed to the lack of public disclosure in the BRI agreement. “We believe in independent decision-making and expect transparency,” Lu noted, reiterating the importance of Nepal’s sovereignty and its ability to engage with global powers on its terms.

While the U.S. Embassy in Nepal had previously raised concerns over the transparency of the BRI deal, Lu’s comments, though diplomatically phrased, reflected broader geopolitical dynamics. They also reinforced the U.S. narrative of openness in agreements like the MCC, which has gained broader political acceptance in Nepal after initial resistance.
Advancing Transitional Justice
Another pivotal theme of Lu’s visit was Nepal’s progress in transitional justice (TJ). Praising the consensus among political parties on recent TJ legislation, Lu acknowledged the challenges ahead in implementing reforms addressing conflict-era grievances. “A democratic process ensures accountability and fairness in addressing past injustices,” he remarked, advocating for transparency and inclusivity in forming the Truth and Reconciliation Commission (TRC) and the Commission for the Investigation of Enforced Disappeared Persons (CIEDP).
While applauding the progress, Lu’s remarks also acknowledged ongoing debates within Nepal’s civil society about the appointment of TJ officials. His emphasis on public engagement and dialogue highlighted the U.S. approach to promoting accountability in transitional justice processes.

Climate Change and Economic Collaboration
Lu’s visit also brought the U.S. commitment to addressing climate change into focus. Announcing a $900,000 initiative in partnership with ICIMOD, the project aims to empower women entrepreneurs in renewable energy across Nepal, India, and Bangladesh. “Women play a tremendous role in the economies of these countries and can contribute to creating sustainable environmental solutions,” Lu said, emphasizing the urgency of tackling South Asia’s climate challenges.
In addition to environmental issues, economic collaboration remained a priority. Lu noted the progress in implementing MCC Compact projects, which are expected to create thousands of jobs and generate significant economic benefits. He highlighted the broader U.S. developmental footprint in Nepal, from expanding USAID initiatives to fostering private-sector investments through the Development Finance Corporation.
Nepal’s Geopolitical Balancing Act
Amid Nepal’s strengthening ties with China, Lu lauded the country’s balanced foreign policy, emphasizing that strong relationships with global powers like the U.S., India, and China are vital for Nepal’s development. “The United States strongly supports Nepal’s sovereignty and independence, enabling it to make decisions free from external pressures,” Lu remarked, reiterating the U.S.’s role as a steadfast partner in Nepal’s development journey.
Continuity in U.S.-Nepal Relations
As the U.S. prepares for a political transition, Lu reassured that Nepal’s 77-year partnership with the U.S. remains robust. Highlighting bipartisan support for Nepal in Washington, he expressed optimism about continued cooperation under any future administration.
Donald Lu’s visit encapsulated the multifaceted U.S.-Nepal relationship—spanning geopolitics, justice, climate change, and economic collaboration. His emphasis on transparency, inclusivity, and Nepal’s sovereignty underscores the U.S.’s intent to remain a key partner in Nepal’s pursuit of sustainable development and global engagement.