KATHMANDU: The Nepali Congress (NC) has resolved to refrain from taking new loans under the Belt and Road Initiative (BRI) until the Chinese government fulfills its grant commitments.
During a meeting today, which included economists and foreign affairs experts to discuss Nepal’s current economic situation and reform measures, the Nepali Congress decided against acquiring new loans associated with the BRI.
Former Finance Minister Dr. Prakash Sharan Mahat said the discussions, stating that existing commitments from China must be honored.
“The Nepali Congress is not opposed to the BRI; we are simply saying that we cannot take on new loans at this time,” he explained.
“In terms of the support we need for connectivity, we initially required grant assistance for road construction. Many of the commitments made by the Chinese government in grants have yet to be fulfilled, and those need to be addressed first.”
Dr. Mahat further emphasized, “If the grant implementation itself is lagging, what is the point of discussing loans? The debt burden is already increasing. Therefore, we should avoid taking loans from any government, including the Chinese government.”
While the Chinese government is expected to implement grant commitments under the BRI, Dr. Mahat reiterated that new loans should not be pursued immediately.
“Regarding the BRI framework, are we attempting to combine other strategic security aspects into this? We believe these matters require careful consideration,” he stated.
“For now, the focus should be on implementing the grants, especially those under the BRI, and avoiding new loans.”
This discussion took place in the Lhotse Hall of the Parliament building, coinciding with the public announcement of an agreement between the ruling CPN-UML and the Nepali Congress regarding the BRI.
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