KATHMANDU: Nepali Congress President Sher Bahadur Deuba has expressed that foreign aid can be accepted by Nepal, provided it is in the country’s best interest.
Speaking at a program organized by the Economic Policy and Planning Department of the Nepali Congress in Sanepa on Wednesday, Deuba emphasized the importance of taking foreign aid in areas that will directly benefit Nepal.
He acknowledged that foreign aid often faces opposition but clarified that it can be beneficial if used strategically for the country’s welfare. He pointed out that several international agencies offer grants to Nepal, and some loans are eventually converted into grants.
Deuba cited the example of the Millennium Challenge Corporation (MCC) compact noting the initial resistance to its approval. However, he added that over time, it has become clear that Nepal has benefited from the project, which is considered a grant, not a loan.
“It was difficult to get the MCC passed in Nepal. But now, everyone understands that it is a grant, not a loan. It has benefited us,” he said.
Deuba also discussed Nepal’s geopolitical positioning between India and China, acknowledging that the policies of these neighboring countries have an impact on Nepal. However, he stressed that Nepal should carefully choose which loans to accept, ensuring that they align with national interests and do not lead the country into a debt trap.
“We have taken loans from the World Bank, Asian Development Bank, Japan, and Korea, with some loans later converted into grants. It is essential to decide on loans that serve our interests,” he added.
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