KATHMANDU: The ruling coalition member Nepali Congress has advised Prime Minister KP Sharma Oli to proceed cautiously with China’s Belt and Road Initiative (BRI), arguing that the projects should not increase Nepal’s debt burden.
The party conveyed this message during a high-level meeting held at party president Sher Bahadur Deuba’s residence in Budhanilkantha on Wednesday.
Top Nepali Congress leaders, including Foreign Minister Arzu Rana, Home Minister Ramesh Lekhak, and party spokesperson Prakash Sharan Mahat, were in attendance.
Mahat, who served as Foreign Minister when Nepal signed the BRI Framework Memorandum of Understanding (MoU) in 2017, clarified the Nepali Congress’s stance to reporters after the meeting.
“We have no reservations about implementing BRI projects,” he said. “But taking on unsustainable debt is not acceptable. The projects must align with the country’s financial capacity and long-term interests.”
Nepal has identified nine projects under the BRI, including tunnel construction, road development, and a railway connection to the northern border with China.
Mahat said that the Nepali Congress is in favor of seeking assistance from China, including grants and technical support, but warned against dependency on loans that could strain the national economy.
Highlighting Nepal’s delicate geopolitical position, Mahat stressed the need for balanced foreign policy.
“China is Nepal’s neighbor, and we must maintain excellent and friendly relations with them. However, agreements should prioritize Nepal’s national interests, ensuring long-term benefits for the country,” he said.
The BRI initiative, introduced by China in 2014, is an ambitious global infrastructure project aiming to enhance connectivity.
Nepal became part of the initiative after signing the MoU on May 12, 2017.
However, concerns about the financial implications of such large-scale projects have been a point of debate among policymakers.
President Deuba and other senior Congress leaders reiterated the importance of Nepal maintaining strong ties with both China and India, focusing on agreements that bolster national interests regardless of changes in political leadership.
The Nepali Congress’s recommendations now rest with Prime Minister Oli, who holds the authority to make the final decision on moving forward with the BRI projects.
As Nepal navigates its involvement in this ambitious initiative, balancing opportunities with economic prudence will remain a key challenge.
