Nepal’s economic situation has worsened following ratification of MCC: Prem Suwal

Published On: June 12, 2022 03:30 PM NPT By: Republica  | @RepublicaNepal

KATHMANDU, June 12: Nepal Workers and Peasants Party lawmaker Prem Suwal has claimed that the country’s economic situation has gotten worse after the government ratified the US-funded Millenium Challenge Corporation (MCC) compact agreement through parliament. 

He claimed that the inflation rate has also increased in the domestic market after the MCC was ratified by parliament. Introducing a proposal to cut spending on various titles of the Appropriation Bill 2022 in the House of Representatives on Sunday, he argued that the prices of petroleum products and LPG have gone up after the US government urged the Prime Minister Sher Bahadur Deuba-led government to vote against Russia in the UN.

Stating that India, which remained neutral on the issue, still gets petroleum products and LPG at one-third of the international market price, MP Suwal said that Nepal is having to import petroleum products expensively as it voted against Russia.

“The country’s economic situation has worsened after the ruling five-party coalition ratified the MCC through parliament. The general public are suffering due to the rising inflation. We can prove that the MCC is the reason behind the increase in the prices of necessary goods and commodities in the domestic market,” Suwal said. 

“Russia provided oil and gas to India, which abstained from the voting, and India is purchasing crude oil at one-third of the international market price. Oil and gas prices skyrocketed in Nepal after the Deuba government voted against Russia. This is a diplomatic failure of PM Deuba,” he added. 

He also reiterated that the coalition government has failed miserably in terms of diplomacy. 


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