Nepal Finance Minister Meets Jaishankar in New Delhi to Discuss Post-Flood Reconstruction and Upcoming Prime Ministerial Visit

Nepal’s Finance Minister Swarnim Wagle met with India’s External Affairs Minister S. Jaishankar in New Delhi on Friday, September 18, 2026, to discuss post-flood reconstruction efforts and a broader reset of bilateral relations. The high-level talks focused on preparing for an upcoming visit by Nepal Prime Minister Balen Shah to Delhi later this year, marking a new phase of diplomatic engagement between the two neighboring countries.

During the meeting, Mr. Jaishankar expressed deep condolences to Mr. Wagle regarding the recent flash floods that have severely impacted Nepal. In a public social media statement, the Indian External Affairs Minister noted that they discussed ways to strengthen overall cooperation, emphasizing economic, energy, and connectivity domains under India's longstanding 'Neighbourhood First' policy framework.

Mr. Wagle’s visit to the Indian capital follows a trip by Nepal Foreign Minister Shishir Khanal in June. These diplomatic visits form part of a concerted push by the ruling Rashtriya Swatantra Party (RSP) and its chairman, Rabi Lamichhane, to reset ties between Delhi and Kathmandu. Relations over recent years had experienced friction regarding boundary disputes and various economic matters.

Ahead of his meeting with Mr. Jaishankar, the Nepalese Finance Minister held discussions with Indian Finance Minister Nirmala Sitharaman. According to official reports, India committed to continuing its support for Nepal's recovery operations following the catastrophic flash floods that struck on August 26. The disaster has resulted in a death toll exceeding 1,400 people, with more than 6,000 individuals reported missing.

Government officials indicate that the total reconstruction required in the wake of the August floods will top $5 billion. To address this immense financial burden, Nepal plans to appeal for multilateral support at the upcoming United Nations General Assembly in New York, where Prime Minister Balen Shah is expected to deliver his first international address.

Mr. Wagle's current trip to New Delhi represents his first international journey since taking office. Following his engagements in India, he is scheduled to travel to Doha for a meeting of the Board of Directors of the China-led Asian Infrastructure Investment Bank (AIIB), as well as attend upcoming International Monetary Fund and World Bank meetings in Bangkok.

According to a formal readout from Nepal's Finance Ministry, Mr. Wagle expressed gratitude for India's immediate assistance following the floods on the Trishuli river. The river had overflowed in areas spanning both sides of the Nepal-China border, destroying a major Chinese border crossing at Rasuwa and disrupting regional logistics.

Both financial chiefs also deliberated on strengthening bilateral economic ties and advancing initiatives to enhance connectivity for trade, investments, and people-to-people exchanges. While Nepal remains eager to explore expanded road and rail connectivity, officials have emphasized the importance of resolving long-standing issues surrounding flight overpermissions.

Specifically, Nepal has raised concerns regarding India's denial of permission for bi-directional flights to the Gautam Buddha International Airport near Lumbini and the Pokhara International Airport. According to Nepalese officials, these restrictions have generated major financial losses regarding debt repayments for the facilities.

Diplomatic ties between New Delhi and Kathmandu have steadily improved since the Shah government assumed power following elections in March 2026. Although initial misgivings occurred—including the cancellation of Indian Foreign Secretary Vikram Misri's visit to Kathmandu in May after it became evident the Nepalese Prime Minister would not meet him—relations quickly recovered following Mr. Lamichhane's visit to meet Prime Minister Narendra Modi in June.

Mr. Wagle, an economist with prior experience as an adviser at the United Nations Development Programme and a senior economist at the World Bank, has a robust background in South Asian development policy. During his stay in Delhi, he is slated to meet with various academics and diplomats. His itinerary includes a Saturday meeting with Indian industrialists operating in Nepal to discuss future investment plans and operational concerns, followed by an address to scholars at the Delhi School of Economics.