The year 2022 is a momentous year in terms of relations between Nepal and the United States of America as the two friendly nations are marking the 75th anniversary of the establishment of their diplomatic ties. The US is the second country in the world, after the United Kingdom (UK), with which Nepal had established diplomatic relations. This clearly manifests how the US has attached importance to Nepal. In February 1958, Nepal opened its embassy in Washington D. C. while the US mission was set up in Kathmandu in August 1959. Relations between the two nations have continued to be consolidated. Several honorary consuls of Nepal have been appointed in different US cities. The US has been supporting Nepal’s development endeavours since 1951. Through USAID/Nepal, the country has extended development assistance to Nepal in numerous sectors such as transport, communication, public health, family planning, malaria eradication, agriculture, forestry and energy, among others. In recent years, the pioneer donor nation has focussed its cooperation on the institutionalisation of peace and democracy. Its cooperation has also been helpful for us to develop human resources.

Under USAID Country Development Cooperation Strategy 2014-18–extended through September 2020, US assistance laid focus on inclusive governance, sustainable economic growth, human capital and post-quake reconstruction. Besides, Nepal and the US have witnessed regular exchanges of visits and sharing of expertise and experiences between their armies in the area of training, disaster management, peacekeeping capacity building and security cooperation, logistics management and fighting terrorism. With the recent approval of the Millennium Challenge Corporation (MCC) Compact of US$500 million grant by the House of Representatives (HoR), the infrastructure project is now coming into implementation in full swing. This step is expected to be instrumental not only in making a remarkable contribution to Nepal's socio-economic development but also furthering the bilateral ties between the two countries.

The MCC Compact agreement (worth $630 million) that was signed in September 2017 aims to strengthen Nepal’s energy connectivity and reduce transportation costs through construction of about 300-km of electricity transmission lines and support for maintenance of key strategic roads. Of the total project budget, Nepal is contributing $130 million. The five-year project has been recognised by Nepal as a national pride project. The project also aims to boost economic growth and reduce poverty. With surplus hydroelectricity being generated in Nepal, the robust cross-border transmission lines and other infrastructure are sure to facilitate the country to export electricity. The revenue to be earned through exporting electricity will help minimise the country's widening trade deficit.

In the wake of the parliament's approval of the US grants project, the MCC has acknowledged it, saying that the US-Nepal relationship was broader than one agreement, and pledged to continue to support for the country’s democratic values, and its long-term economic prosperity. The US agency further stated that the ratification of the compact has enabled work to continue towards implementing the programme which would create conditions for a more reliable supply of electricity, lower transportation costs and help create more jobs for the Nepali people. In the meantime, US Secretary of State Antony J. Blinken, while talking to Prime Minister Sher Bahadur Deuba on Tuesday night, appreciated Nepal's decision to move forward the MCC compact saying it would allow the electricity transmission and road project to create jobs, infrastructure and improve the lives of the Nepali people.