Prime Minister Khadga Prasad Oli is set to pay an official visit to China in the first week of December as efforts to arrange an official visit to India do not seem to have materialized yet. The implementation of the Belt and Road Initiative (BRI) projects is expected to feature prominently during his visit to the northern neighbor. With less than two weeks remaining before the visit, ruling political parties are engaged in intense negotiations on how to advance the BRI projects in Nepal. At the heart of the difference between the two ruling parties—the CPN-UML and the Nepali Congress (NC)—is whether to implement BRI projects through loans. The NC opposes taking loans for any new major projects, while the UML reportedly believes that key development projects should proceed, even if it requires borrowing. The ongoing discussions between the two ruling parties ahead of the prime minister’s China visit underscore Nepal’s lack of a clear strategy regarding the BRI. It is high time political leaders in Nepal forged a clear consensus on the BRI so that Nepal will have the same position no matter which party is in power.
While leaders often commit to implementing BRI projects in public statements, they remain hesitant when it comes to actual execution. This hesitation seems to stem more from political posturing than from the actual terms and conditions of the BRI agreements. Ironically, leftist party leaders who publicly argue that BRI projects should be implemented "under any conditions" often avoid taking decisions to expedite implementation when in power. In contrast, the Nepali Congress (NC) seems to have maintained a relatively consistent position, arguing that taking loans to implement BRI projects could be detrimental as Nepal faces unprecedented economic challenges. The NC’s opposition to loans can be debated. Taking loans for productive investments is not a bad idea in itself. It largely depends on where the loans are invested and under what terms and conditions. The proposal of leftist parties to implement BRI “under any conditions” is not a pragmatic idea, but rejecting loans outright is equally regressive. Governments around the world routinely take loans for productive works, making it a normal practice rather than an exception. Nepal’s political actors must prioritize decisions that serve the country’s best interests and benefit the Nepali people.
Nepal-China agree to conclude BRI Implementation Plan 'soon' as...
Whether there will be a major breakthrough on BRI project implementation during the prime minister’s visit still remains uncertain. Given the historic friendship between Nepal and China, it is unlikely that Nepal’s hesitation regarding the BRI will harm bilateral ties. Differences of opinion among political parties are natural in a multi-party democracy, but Nepal must also respect China’s goodwill. From a practical perspective, the primary issue with BRI is not the loans but the lack of transparency in the terms and conditions, including interest rates. Considering the public debate that surrounded the MCC project funded by the US government’s grant, the Chinese side should recognize that implementing BRI projects will be challenging without transparent agreements. It would be wise for officials from both countries to consider this reality before taking any decisions on BRI projects. As a newspaper, we believe that Prime Minister Oli’s upcoming visit should focus on building a clear, common understanding regarding the BRI. While discussions on BRI implementation continue, Nepal and China’s multi-faceted relationship should not be limited to this issue alone. Nepal should create a conducive environment to attract both Chinese tourists and investments for mutual benefit. What is most important now is Chinese friendship and goodwill as we navigate through the difficult economic situation.
