US envoy Sergio Gor holds talks in Kathmandu on trade, MCC, and tech ties
Synopsis
Ten days after a senior State Department official visited Kathmandu, Trump's special envoy Sergio Gor arrived with a sharper economic agenda — Starlink eyeing Nepal's skies, Netflix reportedly circling its market, and a $550 million MCC grant under active discussion. The flurry of US, China, and India visits signals Nepal is fast becoming a contested diplomatic arena.
Key Takeaways
US Special Envoy Sergio Gor met Nepal's Foreign Minister Sishir Khanal and Finance Minister Swarnim Wagle in Kathmandu on 1 May 2025 .
Gor is the highest-ranking US official to visit Nepal since PM Balendra Shah 's government was formed on 27 March 2025 .
Both sides discussed trade, investment climate, technology-driven employment, and the MCC grant of US $550 million .
Starlink (owned by Elon Musk ) and Netflix are reportedly in talks or eyeing Nepal's market.
Nepal faces significant aid loss following the US disbandment of USAID ; a five-year DOAG worth US $659 million signed in May 2022 is now in jeopardy.
India, China, and the US have all sent senior officials to Kathmandu in recent weeks, underscoring Nepal's growing geopolitical significance.
US Special Envoy for South and Central Asia Sergio Gor met Nepal's Foreign Minister Sishir Khanal and Finance Minister Swarnim Wagle in Kathmandu on 1 May 2025, focusing on economic cooperation, trade expansion, and the status of the Millennium Challenge Corporation (MCC) programme. Gor, who also serves as the US Ambassador to India, arrived in Kathmandu on Thursday evening and is the highest-ranking American official to visit Nepal since Prime Minister Balendra Shah's government was formed on 27 March 2025.
Key Discussions: Business Climate and Technology
Following his meeting with Finance Minister Wagle, Gor posted on social media platform X:
Point of View
China's Cao Jing around the same time, and now Envoy Gor on 1 May, with Indian Foreign Secretary Vikram Misri expected in mid-May — is less coincidental than it appears. Nepal sits at the intersection of three competing strategic visions, and Washington's pivot toward technology investment and MCC consolidation, rather than traditional aid, signals a deliberate recalibration. The disbandment of USAID removes a longstanding lever of soft power, and the US appears to be replacing it with commercial engagement — Starlink, Netflix, software exports — that carries its own form of influence. Whether Kathmandu can extract maximum benefit without being drawn into great-power rivalry will define its foreign policy for the next decade.
NationPress
1 May 2026
Frequently Asked Questions
Why did US Special Envoy Sergio Gor visit Kathmandu in May 2025?
Gor visited Kathmandu on 1 May 2025 to hold talks with Nepal's Foreign Minister Sishir Khanal and Finance Minister Swarnim Wagle on advancing economic cooperation, expanding trade, and discussing the Millennium Challenge Corporation (MCC) programme. He is the highest-ranking US official to visit Nepal since PM Balendra Shah's government took office in March 2025.
What is the Millennium Challenge Corporation (MCC) and why is it controversial in Nepal?
The MCC is a US government grant programme that has committed US $550 million to help Nepal build a high-capacity electricity transmission line and improve roads. It has been controversial in Nepal due to allegations that it could undermine the country's sovereignty, claims the US has strongly rejected.
How does the disbandment of USAID affect Nepal?
Nepal stands to lose significant US aid following the disbandment of USAID. In May 2022, USAID and Nepal signed a five-year Development Objective Agreement (DOAG) worth US $659 million; that pipeline is now at risk. India overtook the US as Nepal's largest bilateral aid donor in fiscal year 2024-25.
What US technology companies are eyeing Nepal?
Starlink, owned by billionaire Elon Musk, has been in talks with Nepali officials about a possible presence in Nepal. US media company Netflix is also reportedly eyeing the Nepali market. Nepal is additionally looking to expand software exports to the US, as ICT services have become one of its leading export sectors.
Who else has visited Nepal recently alongside the US delegation?
China's Cao Jing, Deputy Director-General at the Department of Asian Affairs of China's Ministry of Foreign Affairs, visited Nepal around the same time as US State Department official Samir Paul Kapur on 20 April 2025. Indian Foreign Secretary Vikram Misri is also expected to visit Nepal in mid-May 2025.
