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Nepal: PM Balen Shah Finding His Way Forward Through Diplomatic Missteps?

A controversial border comment by Prime Minister Balen Shah has reignited debate over Nepal's India policy.
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Normally, heads of government are circumspect about acknowledging own transgressions. Not so Nepal’s young Prime Minister Balendra Shah. Whether due to inexperience or ‘Gen Z’ overconfidence, he told parliament on Sunday that: “You might find it strange, but I also learned only recently—after becoming prime minister—that it’s not just India; Nepal too has encroached upon Indian territory in many places.”

As parliament erupted the foreign ministry issued a hasty clarification: Shah’s remarks referred to instances of “cross-border occupation” and encroachments in the Dasgaja, the no-man’s-land area along the Nepal-India border. The ministry stressed that the prime minister was not referring to any official territorial claim by Nepal.

But Balen Shah had crossed some more lines. He said he had discussed the Kalapani issue with the UK, arguing that Britain had a historical responsibility because the dispute traces its roots to the 1816 Treaty of Sugauli signed during British rule in India.

Reports indicated he was trying to invoke British-era treaties and archives that would strengthen Nepal’s legal and historical claims. Other reports suggested he was seeking to balance off India and China by bringing in Britain.

Earlier, he drew criticism after describing Nepal as a “buffer” nation between India and China, a term many Nepali foreign policy experts view as outdated and inconsistent with Kathmandu’s long-standing emphasis on sovereign strategic autonomy. The comments reignited a debate over Nepal’s geopolitical identity and its balancing act between its two giant neighbours.

The latest episode has also renewed scrutiny of Shah’s communication style. Unlike many of his predecessors, Shah has often preferred communicating through social media rather than lengthy public speeches, a trait that supporters see as authenticity but critics view as a liability on sensitive diplomatic issues.

The controversy comes at a sensitive diplomatic moment. Shah’s statement was made just before Rastriya Swatantra Party leader Rabi Lamichhane began a five-day visit to India, where he is expected to meet senior Indian leaders, including PM Modi.

Was Balen trying to complicate Lamichhane’s mission? Frankly nobody knows but it is clear that Nepal’s new government is still finding its feet and when it comes to defining foreign policy priorities, may have a way to go..