The experts also urged the Chinese government to provide additional fuel support to Nepal while the people have been suffering in lack of petroleum products.
Ma Jiali, Deputy Director of China Reform Forum, said, “If the prime minister of Nepal deals with the government and leaders of China stressing on the current crisis, there are clear indication of huge tax exemption on fuel purchase and additional fuel support to Nepal.”
Ma, who is also associated with the School Department of Communist Party of China, said that the 1,000 metric ton fuel which was support by the Chinese government few days back was not sufficient enough for a country like Nepal.
“I am sure the Chinese government and leaders will do their best to support Nepal if the prime minister or president of Nepal visits China immediately and discuss on the seriousness of the current crisis,” Professor Ma, who is currently studying Chinese investment and support in Nepal, told Republica.
Stressing on the impact of Madhesh protest and Indian blockade, Professor Ma stated that Nepal has been undergoing serious humanitarian crisis instead of Chinese expectation of political stability and economic prosperity after the promulgation of the new constitution in Nepal.
“Beijing can't instruct Kathmandu or New Delhi to deal with the current crisis but Nepali leaders can have serious dialogue with Indian leaders and seek support from China too,” Ma added.
Nepal had signed a framework agreement with China for the supply of petroleum products to substantially reduce Nepal's dependence on the Indian Oil Corporation (IOC) since about 45 years back.
“Chinese assistance on fuel or purchase agreement depends on the condition of the roads connecting Nepal. China is not in a mood to invest on the roads maintenance,” he said, when inquired about the possibility of the Chinese investment in the maintenance of roads connecting Nepal to Khasha of China that were damaged by the devastating earthquake of April 25 and its aftershocks.
He said that Nepal has been requesting on the investment on roads connecting to Khasha checkpoint but it requires huge investment.
Meanwhile officials from China-based Nepali embassy have also reached to the conclusion that a top-level visit from Nepal was necessary to make a fresh deal with China.
Following India's reluctance in releasing the fuel supply, Nepal has chosen an alternative supply source to purchase one-third petroleum products of its total consumption.
Nepali Food Festival 2018 kicked off in Beijing
The deal pending since one and half months has remained in dismal state even as a team from Nepal is waiting in Beijing to ink the deal with
maximum exemption on the tax and transpiration charges.
Earlier, the Ministry of Commerce and Supply had written to the government of China to expedite the purchase deal and the Chinese ambassador to
Nepal Wu Chuntai had visited China to facilitate the proposed deal.
Nepali ambassador to China Mahesh Maskey, NOC Director Dipak Baral, and Executive Director Sushil Bhattarai have been intensifying discussions and making diplomatic efforts on the purchase deal with Petro-China but the Chinese side has emphasized on the issues related to tax. Nepal needs to purchase 30,000 metric tons of diesel and petrol per month for one-third of its total consumption, which is 360,000 metric tons per year. A total of Rs 25 billion will have to be spent on tax and transportation if the deal is made as per the Chinese tax policy.
China imports 70 percent of total consumption of petroleum products.
Chinese experts commented that there was delay in visit of the high-level delegation to China soon after the MoU was signed and the visit of Commerce and Supply Minister Ganeshman Pun could not be effective because of his unofficial visit.
“We are waiting to see some top-level delegates in China from Nepal to give full shape to the deal,” the officials at the Nepali embassy in China said.
However, NOC Executive Director Bhattarai said that Nepal should make purchase deal with China even if there is no exemption on the tax. Once the deal is made, we can further discuss on the issues of tax and transportation costs, like we did with Indian Oil Corporation in the past.
