KATHMANDU: The ruling coalition's Nepali Congresshas cautioned Prime Minister KP Sharma Oliagainst undertaking projects that would increase Nepal's debt load and has asked him to move cautiously with China's Belt and Road Initiative (BRI).
At a high-level meeting held Wednesday at the home of party president Sher Bahadur Deuba in Budhanilkantha, prominent leaders including Home Minister Ramesh Lekhak, Foreign Minister Arzu Rana, and party spokesperson Prakash Sharan Mahat gave this advise.
After the meeting, Mahat, who served as Foreign Minister when Nepal signed the BRI Framework Memorandum of Understanding (MoU) in 2017, gave reporters an explanation of the Nepali Congress's stance on the issue.
He underlined that taking on unmanageable debt is unacceptable while expressing the party's support for the execution of BRI projects. Mahat asserts that the projects ought to be in line with Nepal's long-term objectives and financial capabilities.
The construction of highways, tunnels, and a projected railway link to China's northern border are among the nine significant BRI projects that Nepal has approved. These initiatives have sparked hopes as well as worries.
The Nepali Congress is cautious about taking on debts that may burden Nepal's economy and cause long-term financial instability, Mahat reiterated, even while the party supports requesting Chinese assistance, such as grants and technical assistance.
He pointed out Nepal's delicate geopolitical situation and the need to maintain a balance in relations with China and India. He emphasized that any agreements with China must put Nepal's interests first and guarantee long-term, sustainable gains.
China started the global infrastructure project known as the Belt and Road Initiative (BRI) in 2014 with the goal of strengthening ties between nations. Following the signing of the Memorandum of Understanding with China on May 12, 2017, Nepal became a part of the project.
Despite Nepal’s participation, there have been ongoing concerns about the financial implications of large-scale infrastructure projects, with critics questioning the sustainability of such investments.
President Deuba and other high-ranking officials stressed the significance of keeping close ties with both China and India. They also emphasized that, regardless of shifts in political leadership, agreements should be centered on Nepal's national interests.
Prime Minister Oli now has the last say over the BRI projects and their possible execution in Nepal, regardless of Nepali Congress's suggestions.
Nepal must carefully balance the economic prospects of the BRI with the necessary fiscal responsibility to avoid worsening its debt load as it continues to engage in the project.
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