KATHMANDU, Nov 28: Top leaders of the major political parties have argued that Nepal should prioritize its national interest before accepting loans for major development projects from both multilateral and bilateral lenders.
Addressing a program organized by the Center for Social Innovation and Foreign Policy (CESIF) on "Navigating the Strategic Implications of the Belt and Road Initiative (BRI) for Nepal" on Wednesday, leaders from the Nepali Congress (NC), CPN-UML, and Janata Samajbadi Party (JSP) argued that Nepal is currently not in a position to take on large loans due to its ailing economic situation.
NC leader Dr. Prakash Sharan Mahat, who previously served as foreign and finance minister, said that Nepal should make informed decisions on loans from any donors instead of being driven by emotion. “We should not take loans based on emotion. Any loan we take must align with the needs of the country,” he said.
No limitation to beauty
Dr. Mahat also stated that NC is not opposed to the BRI, but Nepal should avoid large loans since the country’s economy is not in good shape at the moment. “We have no objection to the BRI umbrella, but we do not have the capacity to take loans from any parties now,” he said, adding that the upcoming visit of Prime Minister K P Oli to China should focus on implementing the agreements reached in the past.
Also addressing the program, Deputy General Secretary of CPN-UML Pradeep Gyawali, who previously served as foreign minister, argued that all agreements Nepal makes must be guided by national interests. He emphasized the need to devise an appropriate strategy to benefit from the growing economies of both India and China.
Gyawali also argued that the debate on the BRI is heading in the wrong direction, as there has been unnecessary discussion on grants versus loans. “We should debate the BRI without focusing on grants or loans. We can debate loans and grants only when we reach the stage of implementing projects under the BRI,” he said.
Gyawali argued that Nepal should make cautious decisions before undertaking any major projects under loans, as the country’s public debt is equivalent to 44 percent of its total GDP. “It is important to understand that our interests won’t be fulfilled by closing off economic avenues with both neighbors,” he said.
Janata Samajbadi Party-Nepal leader Raj Kishor Yadav, who is also the chairman of the Parliament's International Relations and Tourism Committee, stated that the current government, comprising the first and second largest parties, presents an opportunity to forge consensus on Nepal’s foreign policy. “We should think of our foreign policy as Nepali and keep our national interests at the heart of it,” he said.
