Nepal’s ruling parties, the Nepali Congress and CPN-UML, are at odds over China’s Belt and Road Initiative (BRI). The disagreement emerges as Prime Minister Oli prepares for an official visit to China on December 2, with plans to secure projects under the BRI framework.
Oli’s Push for Development Projects Under BRI
CPN-UML, led by Oli, has been advocating for selective projects funded through Chinese loans under BRI. Addressing a gathering in Kathmandu, Oli highlighted the importance of loans to boost the nation’s production capabilities and developmental efforts.
During his speech, Oli stated,
“I am embarking on this visit to China not just to meet leaders but to bring tangible benefits for the country. These projects will set an example for our future development.”
Nepali Congress Opposes New Loans
Contrastingly, the Nepali Congress has expressed reservations about acquiring new loans under the BRI framework, emphasizing the need to honor existing commitments first.
Prakash Sharan Mahat, spokesperson for the Nepali Congress, explained,
“While we are not against the BRI, we cannot afford to take on additional debt. Existing Chinese grants under the BRI must be fulfilled before considering new loans.”
The Nepali Congress raised concerns about Nepal’s rising debt burden, stating that priority should be given to connectivity projects funded through grants rather than loans.
Key Concerns Surrounding BRI Loans
- Debt Burden: Nepal’s increasing debt remains a critical issue, with the Nepali Congress cautioning against adding new liabilities.
- Grant Implementation: Delays in fulfilling existing Chinese grant commitments have raised skepticism about pursuing additional loans.
- Strategic Implications: The debate also touches on broader strategic and security aspects tied to the BRI framework.
Looking Ahead
As Prime Minister Oli heads to China on December 2, the division within Nepal’s ruling coalition could complicate the signing of new agreements. While Oli views BRI loans as an opportunity for growth, the Nepali Congress urges caution, prioritizing economic stability and transparency.
Nepal’s stance on the BRI will likely shape its long-term partnership with China and influence domestic political dynamics in the coming months.
