Monday, March 2nd, 2026

US Assistant Secretary of State Lu praises Nepal’s progress on MCC Compact



KATHMANDU: US Assistant Secretary of State for South and Central Asian Affairs, Donald Lu, stated that the United States will “wait to comment” until the document of the Belt and Road Initiative (BRI) Framework Agreement signed between Nepal and China is released.

“We will wait for the document to come out,” Lu told journalists on Monday before flying back to the United States.

Nepal and China signed a framework agreement for Belt and Road Initiative (BRI) cooperation on December 4 during Prime Minister KP Oli’s visit to the northern neighbor.

The agreement was formalized in a special ceremony held in Beijing, China, between the governments of Nepal and China, drawing significant attention during PM Oli’s visit.

He added, “The United States believes Nepal should have good relations with all its neighbors, including India and China. But these relationships should be based on mutual respect and respect for Nepali sovereignty and independence.”

Lu emphasized the importance of Nepal benefiting from its relationships with neighboring countries such as India, China, Bhutan, Bangladesh, Sri Lanka, the Maldives, and others.

“The United States is supporting Nepal in many areas, particularly in its economic development and fostering relations, with the goal of making Nepal a strong country that can make independent decisions, free from outside influence,” Lu explained.

During his visit, Lu engaged with Nepali leaders, including Nepali Congress President Sher Bahadur Deuba, Maoist Center Chairman Pushpa Kamal Dahal Prachanda, and Finance Minister Bishnu Paudel, calling the meetings “constructive and encouraging” for strengthening Nepal-US bilateral relations.

Meanwhile, Lu did not meet with Prime Minister KP Sharma Oli, who was not in the capital.

US Assistant Secretary Lu also highlighted the “real progress” in the implementation of the Millennium Challenge Corporation (MCC) Compact in Nepal, which he found particularly encouraging. “Yes, I spoke with Nepali leaders about the MCC, and I was excited by the progress,” Lu said, adding, “I found the Nepali leaders equally excited.”

Lu also praised the passage of the Transitional Justice bill, stating, “There are many challenging steps ahead, but it is impressive to see that it was adopted by consensus.”

He affirmed that the United States will continue its engagement with Nepal, even after the new administration takes office in the US in January 2025.

Lu further appreciated the “real progress” in bilateral relations, including the implementation of the MCC Compact, the growing USAID portfolio, dynamic development finance cooperation investments, the Peace Corps Volunteer Program, and follow-up actions from the investment summit.

Publish Date : 09 December 2024 20:56 PM

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