KATHMANDU: Foreign Minister Dr Arzu Rana has clarified that the agreement between Nepal and China under the Belt and Road Initiative (BRI) is not a loan.
Speaking at the International Relations and Tourism Committee of the House of Representatives on Monday, Rana said the agreement, signed during Prime Minister KP Sharma Oli’s visit to China in December 2024, does not involve any loan.
“The BRI agreement does not mention anything about taking a loan. There is no truth to claims that the agreement was made for a loan,” Rana said. “The terms used in the agreement are ‘grant’ and ‘aid,’ but the word ‘loan’ does not appear anywhere, even if you read the document a hundred times.”
The agreement was signed during Prime Minister Oli’s visit to China from December 2 to 5, 2024.
Rana further added that the political unity reached in Kathmandu was instrumental in facilitating the agreement.
As part of the deal, China has initiated a program to invest Rs 100 billion in buffalo farming in Nepal under the BRI framework.
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